The latest Case-Shiller Index was published today and showed the first positive result for national home values in nearly three years. Case-Shiller is one of the leading sources of home values across the nation. Robert Shiller, a professor at Columbia University, became famous for predicting both the stock market bubble of the early 2000’s and national real estate crisis we have been experiencing the last few years.
The Case-Shiller Index reports 60 days in arrears so the current index reflects home value estimates for May 2009. The latest index for metro Atlanta shows a positive increase of .26% from last month. This is the second increase in a row for metro Atlanta. So what does this really mean? First, this is a broad measure of home values for metro Atlanta. Every local market is different. Second, this signals that we are likley to be seeing the bottom of values for our market. Of course, that could change if short sales and foreclosures flood the market too quickly with additional inventory. Current home values are back to levels last seen in October of 2000. Your local Prudential Georgia Realty real estate expert can give you the facts in your market. The following chart shows the index from January 2006 to July 2009.
2006 - 2009 Seasonal Trend
You can see a pattern of home values increasing over the spring months for the past three years. This is due to the higher demand for homes in the spring and early summer market. This year, we expect an “extended summer sales season” due to the expiring federal & state tax credits plus fears of mortgage rate increases over time. We expect to see positive Case-Shiller Index results for metro Atlanta through the summer months. In the late fall and winter, we believe the index will start to report negative numbers again.
The following chart shows the Case-Shiller Index over different periods of time. The average appreciation historically has been in the 3-5% range. The chart below shows the impact of the drops in the past few years.
The future trends for Atlanta real estate are very positive. Please view of video report at AtlantaRealEstate2009.com for a detailed report on future value trends for Atlanta real estate. If you have question, please contact us. We have many community experts that can help you better understand the current home values and trends in your local market. There is no doubt that right now is a great time to buy real estate in metro Atlanta!
Tags: Atlanta foreclosures, Atlanta homes, Atlanta homes values, Atlanta new homes, Atlanta real estate, Case-Shiller Index Atlanta, Prudential Georgia Realty
