Housing sales in North Atlanta take off, will prices follow?

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It’s the question everyone wants to know. Housing inventories are tight; the news media is reporting low inventory and multiple-offer deals across the country in most markets.

Here in North Fulton and Forsyth County, if you ask anyone looking for a home, they’ll tell you there is little to choose from. We’ve been showing homes to clients that aren’t even on the market in hopes of putting home buyers into the right deal now.

Still, there is some skepticism surrounding the viability of this apparent recovery. At the end of 2012, economists and experts were predicting that prices would be static because buyers wouldn’t want to pay what sellers were asking.

Here’s proof they were wrong:

The chart on the right shows median asking price for homes in metro Atlanta from early 2006 to today. Starting in early 2012, before inventories were so low, asking prices were already beginning to increase. Through last year, asking prices jumped over 15 percent.

Now, experts predict hefty price appreciations and not just the National Association of Realtors. While NAR forecasts 8 percent growth for 2013, CoreLogic predicts 6 percent and Clear Capital says 5 percent.

I won’t put a number on what I expect the increase in sales prices will be in North Atlanta, but I can give you three reasons why I think it will be at least 5 percent: schools, commercial development and residential development.

We have great strengths in all three.

Bob Strader is a local realtor with The North Group of Keller Williams Realty. Visit liveincumming.com or liveinalpharetta.com or email him: info@thenorthgroup.com.