Sept. 2010 Update
Directors, First Multiple Listing Service September 20, 2010
Denise Gryder
678-420-4422
Our housing market is not doing well. There were 3,945 closings for all single family in
August 2010 versus 4,806 for the same year ago period. This is a year-to-year decline
of 17.9% and our 3rd consecutive monthly year-to-year decline.
There have been 34,092 closings for all single family in 2010 through August.
This is a decline of 1.3% over 2009 January-August and clearly is a sign we have
not had a bottom or recovery yet.
There were 3,372 closings for single family detached in August or a decline of
17.1% from the same year ago period. This is the 39 of them were the result of the fall 2009
and spring 2010 housing stimulus.
There were 573 closings in August 2010 for single family attached or a decline of 22.5% from
August 2009. After eleven consecutive year-to-year monthly increases there have now been
two consecutive large percentage declines. The average sale or closed price for single family attached in
August was $137,543. This is the lowest average monthly sale price for single family attached since
November 1999. The August average was 6.2% below August 2009, but almost
30% below the 2007 August high of $195,738.
The average sale price for single family detached was $206,073 in August 2010.
This is an increase of 1.9% over August 2009, but a decline of 8% from the previous month, July.
If the current weak trend for housing continues, we probably will have average monthly closed
prices dip below $200M. I sure hope our recession low of $174,733 from February
2009 will not be eclipsed. I do not believe it will.
There were 4,705 expired listings for all single family in August.
This was almost a 10% decline from August 2009.
Usually this is a positive indicator, but our housing inventory continues to drop,
as the consumer does not want to try to sell their home in this market.
Below is the inventory of all single family at the end of August for the past 11 years. After continually increasing every
year, there now have been three consecutive yearly declines.
The months-supply of homes for all single family was 10.7 at the end of August. This is a decline of 1.3 months from
August 2009 and 3.4 months from the August 2008 high of 14.1.
I believe our housing market will remain depressed through October. If the November election produces some balancing
of power in Washington DC I believe the consumer will take this as a positive and demand will improve for our economy
and housing.
Thank you,
Steve Palm
Smart Numbers
© 2010 Smartnumbers
Need to Know: Servicing Your Air Conditioner
HCFCs and the Ozone Layer
The stratospheric ozone layer shields the Earth from the sun’s harmful ultraviolet radiation. Emissions of certain synthetic chemicals – including CFCs, halons, and HCFCs – destroy the ozone layer, and have created an “ozone hole” over the South Pole.
Through the Montreal Protocol on Substances that Deplete the Ozone Layer, the United States committed to a collaborative, international effort to regulate and phase out ozone-depleting substances. While the US phased out of CFCs and halons in the mid 90’s, we now must first limit HCFC consumption to a specific level and then reduce it in a step-wise fashion.
Phaseout of R-22 and R142b
HCFC-22 (also called R-22) and HCFC-142b are the next two HCFCs that the United States will phase out. The schedule to phase out HCFCs is:
- January 1, 2010
Ban on production and import of HCFC-22 and HCFC-142b except for continuing servicing needs of existing equipment - January 1, 2015
Ban on sale and use of all HCFCs except for certain uses, including continuing servicing needs of refrigeration equipment - January 1, 2020
Ban on remaining production and import of HCFC-22 and HCFC-142b
After 2020, the servicing of systems with R-22 will rely on recycled or stockpiled quantities.
January 2010 Market Report
The Atlanta housing market ended the year on a positive note. However, the strength in October & November did not follow through into December. This may be a reflection of the housing stimulus ending and then being reinstated, but the overall bad economy remains a negative factor for housing demand.
There were 622 closings for single family attached in December. This was a 20.3% increase over December 2008 and was the 3rd consecutive monthly year-to-year double digit percentage increase. Out of the last 34 monthly periods the number of closings declined in 26 out of the first 27 months. But, out of the last 7 months there have been 5 months with monthly year-to-year increases in closings.
Single family detached closed 3,357 homes in December. This was a 3.9% year-to-year percentage decrease, but after lags are reported it will probably be an increase. Closings in December are usually greater than in November. However, 2009 will be negative for only the 2nd time over the past 15 years.
Closings for all single family in 2009 were 52,474 or a decrease of 4.6% from 2008. The last time yearly closings were less than 2009 occurred back in 2001. The 2009 closings were also far below the record high back of 81,071 back in 2006.
The average sale price for single family attached in December 2009 was $155,819. This was 7.9% below December 2008 and marked the 25th consecutive year-to-year monthly decline in price. The average sale price was never above $160M in any month of 2009 but the last time it was below $160M before 2009 was February 2001.
The average sale price for single family detached was $202,135 in December. This was unchanged from the same year ago period, but more than $82M below June 2007’s all time high.
The average sale price for all single family in 2009 was $190,682. This was 14% below 2008 and almost $64M below 2007’s all time high. The last time the yearly average price for all single family was below 2009’s average was back in 1999, TEN years ago.
The average sale price for both single family detached and attached were down 13.8% & 14.9%, respectively, from 2008. The last time an average price was lower for both categories was in 1999.
There were 62,300 expired listings for all single family in 2009. This was more than 23M below 2008’s record of 85,446. There were 22,697 withdrawn listings for all single family in 2009. This was more than 11M below 2007’s record of 33,860.
It is usually a very good sign when there are less expired and withdrawn listings, but for 2009 we need to also take into account the much reduced inventory during 2009 versus 2007 and 2008.
There were less than 45,000 homes/units on the market at the end of 2009. This is far below the end-of-month record of 72,000 homes/units on the market at the end of August 2007. The last time the end-of-month inventory for all single family was below December 2009 was December 2005.
I predict housing will be up the first two quarters in 2010, because of the extended housing stimulus. However, Georgia’s unemployment was just announced for November and it was a record high 10.3%. I believe this may continue to climb and signals a possible double dip recession the second half of 2010. Call your state representatives, write Washington, and let your voice be heard to get this economy going.
Thank you,
Steve Palm Smart Numbers
Real Estate Plays A Key Role in Energy Efficiency
- Image via Wikipedia
The real estate sector plays a key role in energy efficiency and conservation.
The United Nations’ Intergovernmental Panel on Climate Change determined that cost-effective energy efficiency measures in buildings could reduce building emissions by 30% from the 2020 estimated baseline.
Basic improvements include improved building insulation, greater heating and cooling efficiencies, energy-efficient lighting, and energy-efficient appliances.
Learn more about the United Nations’ Sustainable Building & Construction Initiative here.
Spotlight on Water
Our communities are facing greater challenges regarding water supply and infrastructure. How much water does an individual use daily? Find out here!
10 Water Trivia Facts:
- How much of the earth’s surface is water? ?80%
- How much of the earth’s water is suitable for drinking water??1%
- How much water does an individual use daily?? Over 100 gallons (all uses)
- In which room is the most water used? Bathroom
- How much water can you save by turning off the tap while brushing your teeth in the morning and before bedtime? 8 gallons a day
- How much water can a leaky toilet waste each day? 200 gallons
- How much water is used in the average five-minute shower??15-25 gallons
- On the average, how much is used to hand wash dishes?? 9-20 gallons
- How much water is used to produce a single day’s supply of U.S. newsprint? ?300 million gallons
- How much water is used during the growing/production of a single orange??13.8 gallons
Source: Environmental Protection Agency
How is Your Local Water Quality?
Get reports on about Georgia local water quality here.
State Rebates on Water Saving Products
The Environmental Protection Agency’s WaterSense label makes it easy to identify water-efficient products such as toilets and faucet accessories. Find state rebates here.
