Housing Trends 2013
Harry Norman, REALTORS® looks at Atlanta
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tlanta is witnessing the return of real estate and all signs continue to point in the direction of recovery. Gains in the housing market will hold up through the end of 2013 and continue in 2014, but at a more moderate, sustainable rate. Existing-home sales are at a seasonally adjusted annual rate of 5.12 million in October and are 6.0 percent higher than the 4.83 million-unit level in October 2012. Sales have remained above year-ago levels for the past 28 months. The national median existing-home price for all types was $199,500 in October, up 12.8 percent from October 2012, which is the 11th consecutive month of double-digit year-over-year increases. In October of this year, our annual level was 2.06 million, 7.3 percent above October of last year. The median price in the South was $171,500, up 12.9 percent from a year ago. First-time homebuyers – typically around 40 percent of buyers – still only comprise 27 to 28 percent of the market, potentially due to enduringly
tough credit standards, but investors are stepping in and buying homes at unprecedented rates. Nationally, they comprise around 30 percent of buyers.
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t Harry Norman, REALTORS®, we are finishing up this year on a superb note. Our sales are up 24 percent in units and 40 percent in volume from last year. By the end of October, we had already closed $665 million more than in all of last year. “It’s like a light switch has been turned on in the last 12 months,” said Harry Norman Realtor Bonneau Ansley III, who has sold over $85 million himself in the last 12 months. “Homes that are priced right for the market, intown,
have been selling within the first week. Sales prices in the Buckhead area are up 20 percent from what they were 12 months ago. Inventories and interest rates are at historic lows, which has resulted in a true seller’s market.”
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n Atlanta, investors account for around 29 percent of home purchases in the region’s core counties. Among the 25 U.S. counties most targeted by investors, 13 are within Georgia. In the past 18 months, investors have purchased nearly 40,000 homes in metro Atlanta alone. Many are institutional investors and quite often their deals don’t go through the listing services so they have created
U.S. Housing economic outlook
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“It’s like a light switch has been turned on in the last 12 months,” stated Harry Norman Realtor Bonneau Ansley III.
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n anomaly in the numbers, which otherwise have been relatively flat this year. However, their activity has been significantly raising home values in and around Atlanta for the past 18 months.
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tlanta still remains one of the most affordable housing markets in the nation since our pricing dropped so significantly during the recession; lower than in almost any other market in the United States. This has been positive for companies looking to relocate here; especially since we also have a vast population of highly educated young adults. Baxter Healthcare Corporation, for example, has relocated to Atlanta and is constructing a facility that will create approximately 1,500 jobs.
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Also, Caterpillar is opening a manufacturing plant to employ 800, AirWatch is expanding with 800 jobs in the next two years and State Farm is relocating employees to their new Sandy Springs campus,” said Karen McRae, Senior Vice President and Managing Broker with Harry Norman, REALTORS®. “In November, Site Selection magazine ranked Georgia’s business climate as the best in the nation. Mark Arend, the magazine’s editor in chief said,
‘Executives at companies investing there regularly point to its many logistics advantages, cutting-edge workforce training programs … and proactive economic developers … who understand the business requirements of today’s capital investors.’”
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ooking ahead, home values will continue to rise. As this happens, we will see more homes on the market. Right now, we have 4.4 months of supply if you look at sales versus inventory; a balanced market is six months of supply. However, during the last five years, we had not been selling homes at a normalized rate so people were really only selling their homes when necessary. Now sellers who were waiting for better market conditions are listing so they can move. It’s created a little bit of a bubble, but nothing as bad as what we saw in 2006.
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o the real estate market is strong now and we are seeing builders starting to build again. I think these trends will continue. However, we do live in an era of uncertainty. The underlying health of the economy remains weak. Unemployment remains high, which generally impacts housing. And there are also new lending regulations coming in January, which have created some uncertainly about
rates. But, overall, I am very optimistic about the future and the direction of housing in Atlanta. I think the real estate market is going to grow, houses are going to continue to go up in price and we are going to have a stronger market going forward.
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owever, it’s simply of the utmost importance to remain apprised of changes in this time of recovery. This means understanding trends and, most importantly, innovating for the times up ahead. We look forward to using this quarterly report to keep you updated.
A Year of Innovation
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e are innovating as we go. By December, we will launch the Harry Norman, REALTORS® All Access Mobile App. “Features include a comprehensive housing inventory which is updated every few minutes; sales data, high-resolution photos, full property details; and the ability to search for a home by address, city, zip, MLS#, bedrooms, baths, map, GPS or via the revolutionary HomeSpotter camera-view feature, which enables a mobile device or tablet to scan a home and generate its MLS information on the screen, and allows you to view nearby properties that are for sale or recently sold. Favorite searches and listings may be saved in a portfolio, which is accessible via the app or Internet at www.harrynorman.com.”
How Metro Atlanta Has Grown, 2009-2012 Population: Labor Force: Employment: Unemployment:
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2009: 5,240,828 2012: 5,457,831 2009: 2,689,285 2012: 2,736,474 2009: 2,424,779 2012: 2,495,153 2009: 9.8% 2012: 8.8%
#1 In Closed Volume - All FMLS Counties Combined - Properties in all Price Points
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successful app is all about the user experience and we’ve spent many months ensuring the Harry Norman, REALTORS® All Access Mobile App will be the very best - with the most up-to-date information - serving the Atlanta real estate market.
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echnology also continues to influence the housing market, especially high-end homes. “Today’s new homes have to be wired for smart technologies and built for energy efficiency,” said Ansley, who not only represents new metro developments, but also around 30 single-family homes and a coastal development. “And because of the slow demand over the last four years, new construction is roaring back. I have an enclave of six lots off of Peachtree Battle where we have sold five out of six lots just this year. I also represent two exclusive
townhouse communities called The Bellingrath and Regents Park at Peachtree Battle where we have sold 12 homes in the last year, only leaving a couple homes left for sale.”
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s a company, we are currently marketing nearly 20 new housing developments, including Hawks Ridge in Ball Ground, Ga.; an $800plus community offering high-end smart technologies, EarthCraft greenbuilding certifications, lots spanning one to 10 acres, green spaces, lakes, streams, miles of walking trails and views of the Blue Ridge Mountains. Hawks Ridge is zoned for 100 homes, hosted the 2013 U.S. Open Sectional Qualifying in May and was just one of 11 qualifying sites selected by The U.S. Golf Association for this year’s U.S. Open Championship in June. The event drew competitors from around
the world as well as spectators. “We are thrilled and honored that Hawks Ridge was chosen as one of the sites for the U.S. Open Sectional Qualifiers,” said Bryan Schacht, an exclusive on-site agent for McGraw & Associates with Harry Norman, REALTORS®.
An All-Star Year Marketing Luxury Homes
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ur tradition as the Atlanta leader in marketing luxury homes has only grown stronger through the recession as we have marketed some of Atlanta’s most coveted listings. We are the exclusive Atlanta affiliate of Christie’s International Real Estate and our listings are also marketed to a global network via Luxury Portfolio and the Board of Regents Luxury Real
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Estate.
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uxury real estate trends are driven by global changes in wealth management. The paper “Managing Real Estate Booms and Busts” from the International Monetary Fund observed: “Real Estate is an important, if not the most important storage of wealth in the economy.”
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mong our listings is a breathtaking 10-bedroom, 10bath, 18-000-square-foot, Milton, Ga. mansion belonging to a former star pitcher with the Atlanta Braves, John Smoltz. His 19.7± acre estate is listed for $7.2 million and has regulationsize football and baseball fields, plus a basketball court, tennis courts, jogging trail, swimming pool, golf course, eight-car garage and a stocked fishing pond. This one-of-a-kind, three-story mansion is monitored by a multi-station security camera system, within the gated community of Greystone, and has a stunning design and high-end amenities. Harry Norman, REALTORS® has also recently listed another home belonging to a former star with the Atlanta Braves: Chipper Jones. His resplendent 23,504-square-foot, brick-and-stone, traditional Roswell home, which sits on 2 ½± acres, is currently offered at $3.195 million. The home includes a seat theatre and a motor court with six garages, among many other delux features. We have also listed the $4.999 million Sugarloaf Country Club estate belonging to former Atlanta Braves star centerfielder Andruw Jones, who is a five-time National League All-Star. His extraordinary 2002 home has nine bedrooms, 12 bathrooms, three master suites, hardwood flooring, a two-story foyer, three powder rooms, Palladian windows, French doors, columns, arched doorways, a guest house, an indoor basketball court, cathedral
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ceilings. Additionally, former Atlanta Braves All-Star pitcher and former Mets pitcher, Tom Glavine, recently listed his Country Club of the South home with us for $1.995 million. His 1994 brick home has three stories, seven bedrooms, nine bathrooms, two powder rooms and sits on 1.95± acres with a private backyard and a swimming pool. The home has a wine cellar, a fitness room, a family room with a second kitchen, a media room, a bar, a game room and a main-level owner’s suite with a spa bath and sitting area.
A Year of Giving Back
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or 83 years, Harry Norman, REALTORS® has had a tradition of community engagement, involvement and support. On November 7, our Young Realtors Council (YRC) hosted our 8th annual “Bowl-a-Thon” fundraiser at Midtown Bowl, raising over $25,000 for Kate’s Club in Atlanta, which provides a camp-like setting and activities for children who are grieving the loss of a parent, sibling or primary caregiver. Over the past seven years, the YRC has raised over $100,000 to sponsor the Georgia Make-A-Wish Foundation and has granted life-dream wishes to 19 area children.
silent auction hosted by Senior Vice President & Managing Broker Jeanne Linden’s East Cobb Office, raising $737 for Kate’s Kids.
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e are also joining some of Atlanta’s best-known business leaders like Chick-fil-A, Suntrust, Delta Airlines, Atlanta Falcons, Atlanta Hawks, Coca-Cola Company, Emory Healthcare, Gas South, Georgia Pacific, Georgia State University, Metro Atlanta Chamber, and Turner Broadcasting in supporting the Junior Achievement’s mission to teach financial literacy to children. This multimillion-dollar initiative is focused on helping 30,000 middle school students, in Atlanta, thrive in a global economy through an exciting four-week curriculum culminating in a day-long pass to JA BizTown or JA Finance Park, which are fictitious commercial settings comprised of
storefronts, businesses and open spaces with lessons on marketing, budgeting, financial planning and saving for a home. Harry Norman, REALTORS® shares a storefront with POST Properties® where students learn how to plan for a first home.
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ate last year, Harry Norman, REALTORS® joined forces with the Atlanta Board of Realtors® and Habitat for Humanity to help build a home in East Point. Ga. for a mother and her three young children, all under the age of nine. “Our group of agentvolunteers was outstanding,” said Michelle Hollberg, a Harry Norman sales associate. “Everyone was excited to help and to be involved with the Board and this home build.” So far this year, we have spent $103,366 to help sponsor community events, which included Buckhead’s 175th Anniversary Celebration: Yesterday,
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RC Chairwoman Veronica Anderson and broker representatives Jenni Bonura and Lane Jones worked hard on the fundraiser with enhancements like online bowler registration. Also, Anderson coordinated a three-hour bake sale in October with Managing Broker Lane Jones at Harry Norman’s Cobb Marietta office, raising $1,612 for Kate’s Kids. The bake sale included sweets, gift cards, vegetable lasagna, a crawfish dish, lottery tickets and a dinner for six with Lane Jones at her home. Other fundraising initiatives included a
Diane Storey, Shea Zimmerman, Chris Burrell, Dana Eisenberg, Melissa Gailey, and Patsy Alston standing in front of the Harry Norman, REALTORS® and Post Properties storefront at Junior Achievement’s Chick-Fil-A Foundation Discovery Center.
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“This exponential growth signifies that green building has not only survived the econonic downAssociation and Southface, (a 35+ turn - it has thrived.” Today and Tomorrow in partnership with the Buckhead Business Association. The evening celebration took place at the Buckhead Theatre in early March, drew around 350 guests, and featured a photographic retrospective of Buckhead’s history. We were also a proud sponsor of the 2013 Cathedral Antiques Show and Tour of Homes; an annual event by the Cathedral of Saint Philip. The antiques show, featuring collectibles dating back as far as 400 years, took place at the cathedral while the home tour took place throughout metro Atlanta and featured some of Atlanta’s finest homes.
Green Initiatives in Atlanta: An Annual Review
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he Atlanta market has transformed enormously over the past several years. Our EarthCraft green building program, developed in 1999 by the Greater Atlanta Home Builders
Top State Business Climate Rankings 1. Georgia 2. North Carolina 3. Texas 4. Ohio 5. Tennessee 6. Louisiana 7. South Carolina 8. Virginia 9. Kentucky 10. Indiana Source: Site Selection Magazine (2013)
year old non-profit whose mission is to promote sustainable homes, workplaces and communities through education, research, advocacy and technical assistance) has seen its certifications more than double over the past three years to 28,500. “Over the past 14 years, the EarthCraft program has certified a total of 28,500 homes in the Southeast. The total in 2010 was 13,351, so during the past three years we have more than doubled our number of certifications,” said EarthCraft Administrator Trevor Donnelly. “This exponential growth signifies that green building has not only survived the economic downturn - it has thrived.”
energy-efficient appliances,” Turner Seydel told us. “For a healthier home, I recommend using low-VOC paints and refraining from using toxic chemicals in your yard that can harm pollinators, pets and most importantly your children.”
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idtown Atlanta is the first urban eco-district in the Southeast and has spurred the City of Atlanta to set a goal for the creation of five additional eco-districts in the city by 2015. One of the outstanding sustainable efforts has been Atlanta’s response to the Federally sponsored Better Buildings Challenge whose mission is: “To engage the local community to reduce energy and water consumption by at least 20% in participating buildings across the City of Atlanta by 2020 and become one of the country’s top sustainable cities.”
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tlanta also remains a top 10 city for LEED development. (LEED stands for Leadership in Energy and Environmental Design and is a greenbuilding certification program awarded by the U.S. Green Building Council.) Atlanta boasts the first LEED-certified theater (the Balzer Theater at Herren’s on Luckie Street) and we are seeing green building throughout the entire metro area. Georgia Gwinnett College, which opened its doors in 2006, is now working on its third LEED-certified building; Big Canoe debuted its first EarthCraft-certified community, Choctaw Village, several years ago; and Atlanta is home to the first LEED-certified home in the Southeast - EcoManor in Buckhead – which is owned by Rutherford and Laura Turner Seydel. Everyone can take steps to save energy, water and, ultimately, money, by making changes to their homes. This includes low-flow toilets and shower-heads, using LED bulbs and automatic thermostats and using
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entral Atlanta Progress and Southface have guided Atlanta to a premier position in this effort to make commercial spaces more sustainable. The success of the Central Business District/Midtown efforts has influenced the Buckhead Community Improvement District to engage in this amazing program. Midtown has 29 LEED-certified buildings representing 10 million square feet and 19 of its buildings have attained the highest levels of LEED certification. Additionally, Midtown has 22 ENERGY STAR-certified buildings representing 11 million square feet and 35 buildings (including 25 Georgia Tech buildings). The Midtown Alliance has installed 50 recycling receptacles in public right-of-ways, which is the first program of its kind in the City of Atlanta.
lot of smart technologies have also been finding a home in the “green” residential market in recent years. The largest consumer electronics show worldwide, CES,
which takes place in Las Vegas every January, is showcasing the increasing home automation. Smart devices can now control lighting, HVAC systems, automated door locks and security systems. Central touch panels can monitor energy usage. And dehumidifiers can even turn humidity into purified drinking water. “Often the consumer/homeowner sees a more expensive price on an item, say an LED bulb or a high efficiency HVAC system, and they shy away from the more sustainable choice because of the higher cost…What many people miss is that beginner “sustainable” efforts should be as simple as excellent insulation and caulking in our homes and that over time, sometimes very short, the return on all investment is directly reflected in a healthier house and cheaper utility bills. Southface has been a strong pioneer and support in such efforts.” Notes Cotten Alston of HNR.
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reen also remains an exciting topic for us at Harry Norman, REALTORS® and will remain so. Cotten Alston, a Broker Associate in the Buckhead office, was responsible for creating an office recycling plan five years ago. In his quest to grow the program, the office invited Dr. John Beldock, Founder and Chief Technology Officer of EcoBroker International and the Executive Director of the Association of Energy and Environmental Real Estate Professionals (AEEREP) to visit, to instruct and to certify a group of 38+ Harry Norman Realtors as EcoBrokers.
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r. Beldock, a pioneer in this area in the realty business, has taught courses in energy engineering, energy and environmental technologies, statistics and pollution prevention at universities across this country, and he also teaches award-winning real estate continuing education courses to licensed real estate professionals
worldwide. “Sustainability is the way of the future. We must do our part as realtors to assist our clients to make good housing decisions and to understand the larger and very important implications of sustainability,” suggests Cotten. “It is not simply about the front end higher cost of some items. It is about our future, the health of our families, and our values and that of our homes.”
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s the economy improves, we expect to see even more green building in Atlanta and we are judiciously pursuing “green” initiatives as opportunities arise. We have a number of agents certified as EcoBrokers, who represent some EarthCraft-certified homes and we have added energy- and cost-efficient LED lighting to our Buckhead, Sandy Springs, Intown, Cobb Marietta, North Fulton and corporate offices this year.
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arry Norman, Realtors®... “the best move you’ll ever make.”
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Harry Norman, REALTORS® Offices Conveniently Located Near You SALES OFFICES
CORPORATE OFFICES
BUCKHEAD/NORTHWEST 3523 Northside Parkway, Atlanta, GA 404-261-2700 • 800-261-2701 Shea Zimmerman, Sr. VP & Managing Broker
ATLANTA NORTH 10305 Medlock Bridge Road, Johns Creek, GA 770-622-3081 Joy Jones, Sr. VP & Managing Broker
532 East Paces Ferry Road, NE, Ste. 300, Atlanta, GA | Phone: 404-504-7300 Accounting Ron Minnick, Sr. Vice President and CFO
COBB MARIETTA 776 Whitlock Avenue, Marietta, GA 770-422-6005 • 888-722-1400 Lane Jones, Sr. VP & Managing Broker
ATLANTA PERIMETER 4848 Ashford Dunwoody Road, Atlanta, GA 770-394-2131 Todd Emerson, Sr. VP & Managing Broker
Career Services Chris Burell, Director of Career Services
EAST COBB 4651 Olde Towne Parkway, Marietta, GA 770-977-9500 Jeanne Linden, Sr. VP & Managing Broker
BLUE RIDGE 544 East Main Street, Blue Ridge, GA 770-394-2131 Todd Emerson, Sr. VP & Managing Broker
Corporate Dan Parmer, President & CEO Human resources Erika Acoff, Human Resources Manager
FORSYTH COUNTY/LAKE LANIER 1664 Market Place Boulevard, Cumming, GA 770-497-2000 Robert Aiken, Sr. VP & Managing Broker
BUCKHEAD 532 East Paces Ferry Road, NE, Ste. 200, Atlanta, GA 404-233-4142 • 800-241-8263 Betsy Franks, Sr. VP & Managing Broker
Information Technology / Support dept. Scott Bennett, Vice President of Information Technology
INTOWN 1531 Piedmont Road, NE, Suite B, Atlanta, GA 404-897-5558 • 800-711-6930 Mike Wright, Sr. VP & Managing Broker
BUCKHEAD CHASTAIN 3744 Roswell Road, Atlanta, GA 404-233-1492 • 800-553-2385 John Barnes, Sr. VP & Managing Broker
Marketing and Communications Patsy Alston, Director of Marketing & Communications
NORTH FULTON 7855 North Point Parkway, Suite 100, Alpharetta, GA 678-461-8700 Jenni Bonura, Sr. VP & Managing Broker
BUCKHEAD NORTH 3405 Piedmont Road, Suite 150, Atlanta, GA 404-814-9000 • 888-577-8488 Rob Owen, Sr. VP & Managing Broker
Relocation CORPORATE & CONSUMER BUSINESS SERVICES 532 East Paces Ferry Road, NE, Suite 300 Atlanta, GA 30305 770-916-4010 • 800-241-6059 Karen McRae, Sr. Vice President
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SANDY SPRINGS 5290 Roswell Road, Atlanta, GA 404-250-9900 Helen Lynch, Sr. VP & Managing Broker
Big CanoeNorth Georgia
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