Economic Forecast from the Georgia 2014 Real Estate Summit

I recently attended the 2014 Real Estate Summit at The Atlanta History Center.

There were several well-respected speakers from across the real estate industry, as well as Hans Gant, who heads up Economic Development for the Metro Atlanta Chamber of Commerce, and Rajeev Dhawan, Director and Professor,  Economic Forecasting Center, Georgia State University.

The panel was moderated by Ed Baker – Publisher of The Atlanta Business Chronicle.

Here are a few of the highlights from each of the speakers:

Hans Gant Senior Vice President of Economic Development, Metro Atlanta Chamber of Commerce

Hans Gant
Senior Vice President of Economic Development, Metro Atlanta Chamber of Commerce

Hans Gant – EVP of The Atlanta Chamber of Commerce

  • From 2008-2010, Metro Atlanta lost over 200,000 jobs.
  • In 2011, we started to rebound, adding 36,000 net new jobs that year.
  • We added 44,000 new jobs in 2012, and 50,000 in 2013.
  • Companies currently relocating divisions to Metro Atlanta include Pulte, Ernst & Young, GM, AT & T, Caterpillar, and Baxter Pharmaceuticals.
  • He sited “Education” as the number one concern of companies considering relocation to Metro Atlanta, with “Traffic” coming in as a strong second.
  • Gant let us know that there is a strong effort to attract the 2019/2020 Super Bowl to Atlanta!
David Boehmig, President / Atlanta Fine Homes Sotheby’s International Realty

David Boehmig, President / Atlanta Fine Homes Sotheby’s International Realty

David Boehmig – President / Atlanta Fine Homes Sotheby’s International Realty

  • In 2013, there was an increase in the average sales price of homes of 25% across Metro Atlanta.
  • His prediction is that there will be a modest increase in average sales price in 2014.
David Haddow, Commercial Real Estate Broker

David Haddow, Commercial Real Estate Broker

David Haddow – Commercial Real Estate Broker

  • He called 2013 our “Watershed Year”, the dividing line between the prolonged downturn and the recovery.
  • The condo market in town has made a remarkable come back, with only 306 units currently available.
  • The average sales price is $370 per square foot!
  • There was also a tremendous increase in apartment building.
  • His prediction is demand will not keep up with the number of units under construction and proposed for 2014 – 2015.
Scott Murphy – President / DS Murphy & Associates Appraisers

Scott Murphy – President / DS Murphy & Associates Appraisers

Scott Murphy – President / DS Murphy & Associates Appraisers

  • In 2013, there was a huge increase in demand, but limited inventory.
  • The first half of the year was a big challenge for appraisers as they lacked the sold data to support increasing demand and values.
David Ellis – Greater Atlanta Home Builders Association

David Ellis – Greater Atlanta Home Builders Association

David Ellis – Greater Atlanta Home Builders Association

  • In 2013, there was a 46% increase in new home sales!
  • However, he went on to put this number in perspective by reminding us that in 2006, there were over 60,000 new homes built in Metro Atlanta.  In 2013, there were 14,500.
  • His prediction for 2014 is that 18,000 – 20,000 new homes will be sold in Metro Atlanta.
  • 84% of these will be North of I-20.
  • He cautioned that the rising cost of materials and availability of labor will be two very important factors in the home building industry this year.
Rajeev Dhawan – Chief Economist / Georgia State University

Rajeev Dhawan – Chief Economist / Georgia State University

Rajeev Dhawan – Chief Economist / Georgia State University

Overall, the message was that we have strong signs of recovery in the real estate market.

Several of the speakers reminded the audience that real estate is a local business, and we cannot apply broad range statistics to our local  neighborhoods.

For an accurate analysis of the data in your own neighborhood, call or email me for a personal consultation.

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