Georgia Prime Markets Report

Engel & Vรถlkers Prime Markets Report Georgia, USA

The Prime Markets Report Georgia, USA

Executive Summary Engel & Völkers is an international real estate firm with global headquarters in Hamburg, Germany where it was founded and its North America headquarters in New York City.

Fueled by growing demand for North American properties among its clients throughout Europe, Asia, Africa and South America, Engel & Völkers has focused worldwide expansion on the continent and has dedicated resources to efforts in the U.S., Canada, and Mexico.

The strategy is supported by market research to identify the potential for establishing an Engel & Völkers brokerage.

Methodololgy.....................2 Key Findings..................... 3 Metropolitan Comparisons...................... 5 International Market..........8 Prime Markets................... 9

Luxury by the Square Foot..................11

Demographics....................13 Income Comparisons........ 14 Conclusion........................ 14

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In the state of Georgia, where the demand for luxury properties has increased, the Engel & Völkers Prime Markets Report presents data to provide real estate professionals, industry experts, home sellers and homeowners an in depth look at the state’s prime markets

Methodology The Engel & Völkers Prime Markets Report for Georgia is the result research conducted by the Engel & Völkers North America market research staff. The Report assembles data gathered from a variety of sources surveyed over a period of time. Sources include real estate portals, such as Zillow® for housing data, median sales prices, prices per square foot, and the number of reported listings; the National Association of REALTORS® “Profile of International Home Buying Activity” for information regarding international transactions in the

Prime Markets Report |Georgia

United States; the United States Census and American FactFinder Survey for all population and demographics information, including income, salary reports and employment information based on population estimates for calendar year 2012. Assuming top real estate production occurs in markets with high population numbers, the Engel & Völkers market research team, identified the top metro markets in Georgia based on population and compared them based on prime, luxury real estate activity.

Key Findings Georgia’s home values increased 8.7% in the past year. The median sales price of homes listed is $174,000 and the median sales price for homes sold is $153,400. Homes listed at $606,000 and above represent the top 5% of properties for sale in Georgia.

Homes in the list of top 5% in Georgia exist in all major metropolitan markets identified, and also include lakeside communities and summer destinations surrounding Burton Reservoir, Lake Rabun and Lake Oconee. There are 612 luxury properties, defined as homes priced at $1 million or above in the same metropolitan markets. Atlanta had the highest number of homes in the top 5%.

The greatest source of international transactions according to the National Association of REALTORS® come from buyers in Canada, China, Mexico, India and the UK. In 2013, Georgia represented one of the top eight states in the international transaction markets in which 2% of all international transactions occur.

Research on the highest residential real estate sales prices in Georgia, by county, revealed that the majority of the counties in which median sales prices were the highest comprised a significant portion of the Atlanta metro area.

According to the report, the median sales price for Atlanta’s metro area exceeds the median sales price of all of Georgia’s metropolitan markets. The median sales price for the entire Atlanta metro area exceeded the next highest Georgia metro area, which is

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Prime Markets Report |Georgia

Over the last 10 years there has been a resurgence of interest from buyers from Europe, thanks in large part by the effort put in by the Atlanta Chamber of Commerce and the last few governors of our State to bring international attention to Georgia.

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Scott Askew, Broker and Owner of Engel & Völkers Intown Atlanta.

Savannah by 42%. Also, Atlanta’s median sales price has grown by a rate of 6.4% year-over-year as of March 2014. While the median sales prices to other metropolitan markets in Georgia reside below the state’s median sales price, real estate activity in the market shows that the majority of such markets are improving in price point. For example, Athens, GA and Brunswick, GA each grew by 11.8% and 19.6% year-over-year, respectively, yet fall below the median sales price for Georgia.

Identified as Georgia’s prime market, the Report looked at Atlanta’s international makeup to determine the potential for international real estate transactions. Eighty-one percent of all individuals seeking legal permanent residence status in the state of Georgia applied in Atlanta.

In Atlanta, the top countries of origin among those seeking permanent residents came from India, Mexico and South Korea.

Interviews conducted with Engel & Völkers real estate brokers representing the market revealed that the international activity has increased over the past three to five years and that sales came from buyers who sought a primary residence.

Also included in the Report is data related to average income among all residents of Atlanta by county. Average family income in Atlanta exceeds both U.S. and Georgia family average income by 27.17% and 38.82%, respectively. Family mean income averages were higher than household mean income averages for Atlanta. However, household income data is far more relatable to real estate professionals as a representation of income by single dwellings as opposed to income by families potentially owning multiple dwellings.

Prime Markets Report |Georgia

Metropolitan Market Comparisons When median sales prices in Georgia were compared by county, the majority of markets showed improvement in price point. For example, Athens, GA and Brunswick, GA each grew by 11.8% and 19.6% year-over-year, respectively; yet fall below the median sales price for Georgia. A significant portion of the highest sales prices were concentrated in the Atlanta metro area.

median sales price of homes in Georgia in March 2014

Metropolitan Comparison

Augusta

Hinesville

Rome

Albany Dalton

85,000

Colombus

105,000

Gainsville

125,000

Brunswick

145,000

Warmer Robins

165,000

Athens

185,000

Savannah

205,000

Georgia’s Median Sales Price

Atlanta

225,000

$153,400

Change in Median Sales Price over the Last Year City

Atlanta

Savannah Athens

Warner Robins Brunswick

Gainesville

5

Percent +6.4

+24.3 +9.0 +11.8 +19.6

+11.7

City

Columbus Albany Dalton Rome

Hinesville Augusta

Percent

-5.2 -5.6 -18.3 -0.6 0.0 -1.8

Prime Markets Report |Georgia

Number of Homes in the Top 5%, by City

number of million dollar homes per city

Hinesville 39 Rome 19

1

Dalton 20

Albany Warner Robins

Albany 8 Gainesville 149 Brunswick 26

2

Warner Robins 7 Valdosta 61

Macon

Athens 49

6

Macon 8 Savannah 108 Augusta 27 Atlanta 768 Columbus 30

Augusta Dalton Rome

8 Highest Priced Listings in Georgia City

Sales Price

Ellijay

$22.7M

Conyers Statesboro Flowery Branch Gainesville

St. Simons Island Atlanta

Sea Island Suwanee

$28.1M

$20.6M $19.9M

$17.5M $16.8M $15.9M $15.7M $15.0M

Brunswick Columbus

12 Athens

13

Hinesville

26

Valdosta

40

Savannah Highest Priced Zip Codes Outside of Metro Atlanta Zip Code

Sales Price

31401 Savannah

$258,800

31522 Brunswick (St. Simon Island) 31410 Savannah

31324 Savannah (Richmond Hills) 31405 Savannah

6

$298,985 $216,800

51

Gainesville

432 Atlanta

$211,575

$206,630

Prime Markets Report |Georgia

Highest Priced Listings Across Georgia Albany

$1,100,000

$3,650,000

$799,900

$2,650,000

$795,000

$1,700,000

$799,900

$1,950,000

Atlanta

$15,900,000 $12,900,000

Augusta

$3,700,000

$1,875,000

$12,900,000

$1,530,000

$10,500,000

$1,242,000

$10,950,000

$1,450,000

Brunswick

$5,100,000 $2,975,000 $2,359,000 $2,250,000

$749,900

$1,552,968

$699,300

$1,390,000

$8,900,000

$999,999

$1,350,000

$599,500

$1,250,000

$7,500,000

$940,000

$995,000

$699,900 $675,000 $599,000 Columbus

$3,500,000 $2,700,000 $1,950,000 $1,580,000

$1,490,000

$1,350,000 $1,200,000 Dalton

$5,000,000

$2,188,000

$2,183,000

$1,258,260

$8,900,000 $7,500,000 $7,000,000

Gainesville

$17,500,000 $8,495,000

$1,100,000 $985,000 $900,000

Hinesville

$2,074,000

$1,509,000

$4,000,000

$1,500,000

$3,400,000

$1,450,000

$3,499,950

$1,495,000

$1,800,000 $1,495,000 $1,059,000 $995,000 Macon

$1,150,000 $1,095,000 $974,900 $925,000

$1,495,000

$1,100,000

$1,189,000

$950,000

$2,950,000

$1,335,000

$689,000

$995,000

$835,000

$2,490,000

$1,276,800

$599,000

$1,495,000 $1,125,000 $979,000 Rome

$1,975,000 $1,650,000 $1,350,000

$1,100,000 $895,000 $799,900

Savannah

$3,795,000

$3,400,000

$2,900,000

$3,250,000 $2,699,900 $2,400,000

$1,393,200

$1,276,800 $1,200,000

$2,100,000 $1,942,000

$800,000

$1,786,400

$750,000

$2,400,000

$998,500

$2,399,000

$1,725,000

$599,000

$1,975,000

$1,350,000

$475,000

$1,975,000

$830,000

$1,970,000

$849,900

$650,000 $595,000

$989,900

$998,500 $895,000

$749,900

Warner Robins $1,350,000 $2,500,000

$2,800,000

$2,600,000

$835,000

Valdosta

$1,300,000 $1,200,000

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Athens

$1,900,000 $1,750,000 $1,594,480 $1,300,000

$800,000 $657,000

$499,000 $465,000

Prime Markets Report |Georgia

The International Market According to the National Association of REALTORS® international transactions across the U.S. in 2013 originated from buyers in Canada, China, Mexico, India and the U.K. In 2013, Georgia represented one of the top eight states in the international transaction market in which 2% of all international transactions occur.

Shares of the Top Countries of Origin of Total Reported International Transactions

■ Canada ■ China ■ Mexico ■ India ■ United Kingdom ■ Germany ■ Argentina ■ Isreal

■ Australia ■ Korea ■ Brazil ■ France ■ Venezuala ■ Russia Other

Distribution of International Sales by State and Year 30% 25%

■ Florida ■ California ■ Texas ■ Arizona ■ Nevada ■ New York ■ Georgia ■ Virginia

20% 15% 10% 5%

2009

8

2010

2011

2012

2013

Prime Markets Report |Georgia

The Prime Real Estate Market Atlanta’s metro area markets have the highest median sales price of all of Georgia’s metropolitan markets. In fact, the median sales price for the entire Atlanta metro area exceeded the next highest metro area, Savannah by 42%. We defined the luxury price point by doubling the median sales price in Atlanta ($450,000). This also focused the market to the top 20% of all listings in Atlanta.

Also, Atlanta’s median sales price has grown by a rate of 6.4% year-over-year as of March 2014.

Georgia Median Sales Price by County Forsyth County $261,375 +70.39% Greene County $363,846 +137.19%

Fulton County $240,465 +56.76%

Turner County $250,000 +62.97%

Miller County $338,500 +120.66%

Our research gives us a full picture of the market which we use to plan our marketing strategy and identify the best fit for the Engel & Völkers brand. The research shows where there are several opportunities for that to be the case throughout the state of Georgia.

Tim Jones, SVP Market Development

Number of Listings1 USA

3,257,186

Percentage to USA

Georgia

127,222

3.91%

Atlanta 5,525

0.17%

Percentage to Georgia 4.34%

Number of Listings Over $450K1 USA

433,911

Percentage to USA

1

9

Georgia

Atlanta

2.47%

0.32%

11,039

992

Percentage to Georgia 13.09%

per zillow.com, as of May 13, 2014

Prime Markets Report |Georgia

Select Atlanta Median Sales Prices by Neighborhood Neighborhood

Garden Hills Buckhead

Morningside-Lenox Park

Peachtree Heights East Buckhead Peachtree Hills Buckhead

Sales Price $460,050 $541,615

$575,000 $515,000

Compared to Median +104.47% +140.72% +155.56% +128.89%

Select Atlanta Median Sales Prices by Zip Code Zip Code

30306 Druid Hills 30307 Druid Hills

30327 Chastain Park/Buckhead 30338 Dunwoody

30342 Chastain Park/Buckhead

10

Sales Price $508,650

$355,294

Compared to Median +126.07%

median sales price of homes in Atlanta in March 2014

+57.91%

$687,850

+205.71%

$379,925

+68.86%

$358,950

$225,000

+59.53%

Prime Markets Report |Georgia

Luxury by the Square Foot Looking at the median sales price per square foot, the following data compares sales prices across Atlanta neighborhoods and zip codes, Georgia counties, and similarly priced metropolitan markets in other states.

Median Price per Square Foot, Atlanta Neighborhoods Neighborhood

Garden Hills Buckhead

Median Price $242

Morningside-Lenox Park

$290

Peachtree Heights East Buckhead

$308

Peachtree Hills Buckhead

$306

median sales price per square foot

$119

United States

$85 Georgia

$91

Atanta, GA

$188 Seattle, WA

Median Price per Square Foot, Atlanta Zip Codes Zip Code

30338 Dunwoody

30342 Chastain Park, Buckhead 30319 Brookhaven

30327 Chastain Park, Buckhead 30306 Druid Hills

Median Price $144 $178

$190

$213 $270

$205 Stamford, CT

$217 Boston, MA

$219

Cape Cod, MA Median Price per Square Foot, Georgia Counties County

Forsyth

$105

Fulton

$132

Miller

$225

Greene Turner

11

Median Price

$226

Washington, D.C.

$152

$226

Prime Markets Report |Georgia

How Many Square Feet Can You Buy In...

Neighborhood

Garden Hills Buckhead

Morningside-Lenox Park Peachtree Hills Buckhead

Peachtree Heights East Buckhead

$225K $450K $750K $1M 930

1,860

735

1,471

776

731

3,099

4,132

1,552

2,586

3,448

1,461

2,435

3,247

2,451

3,268

How Many Square Feet Can You Buy In...

Zip Code

$225K $450K $750K $1M

30342 Chastain Park, Buckhead

1,264

2,528

30327 Chastain Park, Buckhead

1,056

2,113

30338 Dunwoody 30319 Brookhaven

30306 Druid Hills

1,563 1,184 833

3,125

5,208

6,944

2,368

3,947

5,263

1,667

4,213

3,521 2,778

5,618

4,695 3,704

How Many Square Feet Can You Buy In...

County

$225K $450K $750K $1M

Fulton

1,705

3,409

5,682

1,000

2,000

3,333

Forsyth Greene Miller

Turner

12

2,143

1,480 996

4,286 2,961

1,991

7,143

4,934

3,319

9,524 7,576

6,579

4,444

The luxury price in Buckhead starts at $850,000. In terms of the kind of homes, many that are considered luxury are either very old mansions and homes or very new properties including luxury condos.

As far as lifestyle, Buckhead offers high end shopping and nightlife. hirley Gary, Owner and S Broker Engel & Vรถlkers Buckhead Atlanta

4,425

Prime Markets Report |Georgia

Atlanta Demographic Information Atlanta represents a highly diverse population. The international origins of those seeking legal residence status indicates a potential for real estate sales from buyers abroad. Eighty-one percent of all individuals seeking legal permanent residence status in the state of Georgia applied in Atlanta.

1,031,631 Populations Seeking Legal Residences in the U.S. Country of Origin Mexico China India

Philippines

Domincan Republic

Population 146,406 81,784

66,434

57,327 41,566

Percent Receiving Residence 14.19% 7.93%

6.44%

5.56% 4.03%

Populations Seeking Legal Residences in Georgia Country of Origin

Population

Mexico

2,854

India

2,234

China

1,067

South Korea Nigeria

1,337 995

people seeking legal residence in the United

26,134

people seeking legal residence in Georgia

21,289 people seeking legal residence in Atlanta

Percent of All Those Receiving Legal Residence in Georgia 10.92% 8.55%

5.12%

4.16% 3.81%

Populations Seeking Legal Residences in Atlanta Country of Origin India

1,769

Mexico

1,593

Burma

919

South Korea Nigeria

13

Population

953

917

Percent of all those Receiving Legal Residence in Georgia, Atlanta 6.77%, 8.31% 6.10%, 7.48%

3.65%, 4.48%

3.52%, 4.32%

3.51%, 4.31%

Prime Markets Report |Georgia

Atlanta Household Income Average family income in Atlanta exceeds both U.S. and Georgia family average income by 27.17% and 38.82%, respectively.

Average family income was higher than the average household income for Atlanta. However, household income data is far more relatable to real estate professionals as a representation of income by single dwellings as opposed to income by families potentially owning multiple dwellings.

Household Income

■ US ■ Georgia ■ Atlanta

$80,000 $70,000 $60,000 $50,000

$40,000

$30,000 $20,000 $10,000 Median

Mean

Median Household Income Distribution, US

■ Less than $10,000 ■ $10,000 to $14,999 ■ $15,000 to $14,999 ■ $25,000 to $34,999 ■ 35,000 to $49,999 ■ $50,000 to $74,999 ■ $75,000 to $99,999 ■ $100,000 to $149,999 ■ $150,000 to $199,999 ■ $200,000 or more

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Prime Markets Report |Georgia

Median Household Income Distribution, Georgia

■ Less than $10,000 ■ $10,000 to $14,999 ■ $15,000 to $14,999 ■ $25,000 to $34,999 ■ 35,000 to $49,999 ■ $50,000 to $74,999 ■ $75,000 to $99,999 ■ $100,000 to $149,999 ■ $150,000 to $199,999 ■ $200,000 or more

Median Household Income Distribution, Atlanta

■ Less than $10,000 ■ $10,000 to $14,999 ■ $15,000 to $14,999 ■ $25,000 to $34,999 ■ 35,000 to $49,999 ■ $50,000 to $74,999 ■ $75,000 to $99,999 ■ $100,000 to $149,999 ■ $150,000 to $199,999 ■ $200,000 or more

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Prime Markets Report |Georgia

Conclusion As a luxury real estate market, Georgia offers opportunities for real estate agents, brokerages and brands to transact at the premium market price points. Conditions are prime for increased international activity. International and luxury real estate firm, Engel & Vรถlkers has identified Georgia as a primary level market in its North America expansion and has opened offices in Atlanta as a result. Based on its research the firm plans to further develop the metro Atlanta, as well as Savannah, Augusta and Gainesville.

Engel & Vรถlkers North America 430 Park Avenue, 11th Floor New York, NY 10022 Tel: + 1 212 234 3100

Email: info@evusa.com evusa.com

Engel & Vรถlkers Buckhead Atlanta 3490 Piedmont Road, Suite 1000 Atlanta, GA 30305

Tel: + 678-373-0739

Email: buckheadatlanta@evusa.com buckheadatlanta.evusa.com

Engel & Vรถlkers Intown Atlanta Atlanta 1411 N Highland Avenue NE Atlanta, GA 30306

Tel: + 1 404-874-6357

Email: intownatlanta@evusa.com

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Prime Markets Report |Georgia