After plummeting for 5 years, home values in Gwinnett County are finally being energized largely due to the shrinking supply of available inventory. July 2013, average home prices in Gwinnett County rose to $210,541. This represents a gain of 6.7% from June and nearly 39% from July 2012 where the average sale price was $151,724. In July 2012 there were 3,768 detached, single-family homes listed for sale. By July 2013, inventory decreased by 42% with only 2,187 homes listed for sale.
In January 2012, the average sale price hit bottom at $126,169. The abundance of distressed properties on market meant that buyers could really have their pick, placing relentless competition on traditional sellers. During the spring of 2012, as distressed inventories continued to climb so did home sales. Meanwhile, large investment firms and hedge funds came in from the west coast and began buying up everything they could get on the courthouse steps. This dramatically reduced the quantity of distressed properties coming on the market and put a squeeze on available inventory. As many of the short sales have either been completed or lost to foreclosure, the supply of distressed properties has further decreased.
In April 2013, the available inventory of traditional (non-distressed) homes finally rose above the distressed inventory. Inventory has remained low and steady at a 2 month supply for most of 2013. Only in April, did it rise to 3 months, then fell right back again in May. As the inventory has decreased, prices have seen a nice boost. While this is great news, you still have to be competitive with pricing to appeal to buyers. The great news is that many people who have been underwater, or destined for short sale can now consider making a move. Depending on how far underwater you were, the chances are improving every month that you can at least break even and save further hits to your credit if not leave the table with a little money!
Stay tuned for similar updates broken down by Gwinnett County high school districts. Don’t see yours listed? Contact me for a report based upon your area.