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Welcome back to Go Gaddis Real Estate Radio right here on AM nine 20. The Answer. I'm Cleve Gaddis, and I'm joined in the studio by the beautiful and talented Tammy Slave. Great. Oh, opening Cleve. Thank. I'm happy to have you here. Tammy is my girlfriend and she lives in Dallas, Texas and she is in real estate herself.
She's a real estate broker, and so we love talking all things real estate on our show. Every time you're in Metro Atlanta, in this segment in our neighborhood spotlight, we're featuring St. Ives Country Club and you know exactly where that is. We're gonna answer the question, is a home price crash coming?
And then what upgrades may you be considering doing to your home that do not provide a very good return on investment? If somebody wants to connect with us, Tammy, it's easy. They can go to go gad us radio.com. They can ask questions, they can make comments, they can push. , he can share ideas with us. They can request their neighborhood be featured in our neighborhood spotlight and they can subscribe to our podcast.
Tammy, when we give these neighborhood updates, you as a, you don't know the neighborhoods themselves cuz they're not in Dallas, right? But what do you think about the information we are giving and why should a homeowner in one of those neighborhoods, why should they pay attention to the numbers we're giving?
Um, so the health and desirability of the community. So you always want to know, um, how your own community is faring if you have a neighboring community. It would be interesting to know how is my neighboring community faring, and as a buyer, as I'm looking to move into a specific subdivision or an area of where that subdivision is housed.
Wanting to know how is the health and the desirability of that community now you include a lot of years going back in time on yours. So for me, I'm also just very interested in how did it recover after 2008? Where is it sitting now? Cuz that can lead into patterns and rhythms in there. Yeah. And we do that cuz we like to know just how much appreciation they've had since the low.
Okay. Which is really the same thing you're saying. That's why we go back so far. Just to be able to have it. We have all of this data all the way back to 2007 for all of these neighborhoods in metro Atlanta. Let's take a quick look at St. Ives. St. Ives is in Johns Creek, Georgia. It is on Medlock Bridge Road, just north of State Bridge Road.
If you are in Duluth or Alpharetta or Johns Creek, or Suwanee for the matter, or Roswell, you really wanna pay attention because what's happening here might be the same thing that's happening in your neighborhood if you live in a golf country club. Anywhere in this area of North Atlanta in 2022, there were 40 homes sold.
Took an average of just under a hundred days, Tammy, at an average sales price of $886,000. In 2021, there were 48 homes sold, took, oh, listen to this, Tammy, only 24 days. Only 24 days listing the contract and the average sales price went from 886,000 to $1.245 million. That's 245, 345, $360,000 in increase in one year.
That went from a lower 530,000 up to a high of $2.838 million. Just amazing in 2022, do you think sales prices continued to go up, Tammy, or do you think they might have leveled off just a guess in 2022? 2022? Oh, I would say they, um, leveled. Leveled and, and do you think it's probably because of it being a higher end country club and so it might have been affected a little bit more, a little bit faster?
That's kind of what I'm thinking. Oh, I don't know. I, I haven't thought so. I don't know how. , um, market here specifically is for that. . So, yep. Average sales price in 2022 for 44 homes that sold in an average of 20 days was 1.232 million. So the average sales price went down $13,000 a year over year. I would say that's really not a big deal.
Went from a low of 730,000 up to high of $1.94 million. Currently there. Five homes listed for sale in the neighborhood at an average list price of 1.360 million. There is 1.36 months worth of inventory, which means Tammy, that's still a seller's market. Mm-hmm. anything under four months worth of inventory.
We consider a seller's market. For in five months worth of inventory, we consider a balanced market, and more than five months worth of inventory, we consider a buyer's market. The average sales price in that neighborhood, Tammy, in 2011, which was when the low price was set during the recession, was $574,000.
Think about that. $574,000 in 2011. 1.245 million in 20 21, 1 0.23, 2 million. So when you look at price increase from 2011 to 2020, Homeowners in that one subdivision, those 765 homes, plus or minus, have increased homeowner equity of 513 million. Isn't that incredible? It is. So I, so when I look at your years, it took about after 2011, when it hits low.
Five years to recover where it was previously at, at its high. That's right. You're exactly right. Cause in 2016 the price was almost what it was in 2007. Yeah. So it took five years for it to recover. So for me, security and facts and numbers, with the perception being, even if the market crashes, history has proven that insane knives, it's taken five years.
So even if it crashes, stay in your home for. Stayed in your home for five years, and I don't believe it's going to crash. And it's funny you bring that up because that is really the next subject. Two quick things. If you're looking for a School Chimp report on a high school in metro Atlanta, the only place you can get one is through Go Gaddis real Estate.
Radio, so go to Go gaddis radio.com. Click on School Chimp. It will be the most amazing report you've ever seen that combines all the real estate data, the demographic data, and the school score. Also, if you are searching for a home for sale, go to sure mls.com, s U R e mls.com. It pulls listings from all, from both major listing services in metro.
And it keeps you in the, no, the National Association of Realtors. Tammy says that home. Now remember, home sales in the US fell 17 or 18% last year. The National Association of Realtors projects that home sales will fall an additional 6.8% this year. The reality is 6.8% is not that big of a drop. You agree?
Correct. I agree. It's not that big of a drop, and the reason is because the market is more stable. Mm-hmm. , right now, 0.6% of homes that have mortgages in the US are in foreclosure 0.6. During the recession. 4.6. That's a whopping difference, isn't it? It is. Think about this mortgage, mortgage delinquency as a percentage of all mortgages outstanding in the US right now.
3.6. So 3.6 out of a hundred mortgages are delinquent in their pavement. During the recession, that number was 10.1%. , have you had any, um, forbearance for, like foreclosures due to forbearance come across you? Not yet. Have you? We've had one. Okay. So, so, and just to be clear about your question, there was forbearance that was put in place during the pandemic mm-hmm.
for people who couldn't make their payment. And you're saying ever since then, we haven't had any that have been foreclosed on as a result of a forbearance. And forbearance is where they, uh, lender forgives. for either back due amounts or current payments for a few months and they add it to the end of the loan.
That's the most common way that it didn't, they didn't all work that way. Some of 'em, they had to pay back after the forbearance was over. But you've only had one. So, uh, let me Correct. So we've not had one that's fully been foreclosed. Oh. But we have one now. Who is avoiding being foreclosed due to that?
Oh, they haven't been foreclosed. They haven't been. This is somebody, you know, who's working through this to keep their home. Okay. Well, actually we're selling their home. So they, so they avoid foreclosure. They can avoid foreclosure. Yeah. Interesting, interesting. Interesting. Mm-hmm. , A couple of other real quick facts.
During the recession, 7.65 million homes had been constructed in the five years prior. 4.6 million is the number that's been constru constructed in the last five years, uh, before to date. So the reality is, is that the housing market is very, very stable. If you are looking to sell your home anytime in the next six months, take advantage of our seller confidence plan.
Make sure you know your. We say call us before you list your home with anyone else so we can help you understand what all the options are. And maybe you might be better served to work with a team like us than with someone else. How do you get more information? Go to go ga us radio.com, G O G A D D I S radio.com and um, click on contact us.
Put in a little bit of information. By the way, if you bought a home in. 22. It's time for you to file for your homestead exemption. Now is the time. I believe you have until March 15th and all of the counties in metro Atlanta. How do you find out more? Go to go gadi radio.com. On the top toolbar to the right, you will see Homestead Exemption.
Click on that. It will give you the list of all counties in Metro Atlanta. When you click on that county, it'll take you directly to the County Tax Commissioner's website and it'll tell you exactly how to file for a homestead exemption. Don't forget, cuz once you miss March the 15th of this year, you gotta wait until next year to be able to file our next year for it to get started.
Tammy, we got a listener question. From, uh, Liz in Lawrenceville. She says she purchased her home with our team. Fantastic. I remember Liz last year, and she's looking to do at least one major, major renovation this year, but can't decide between the kitchen or the bath. Do you have a suggestion on which will give me the most return on my investment?
Tammy, what do you think? ? So I'm gonna start by answering the question without actually answering the question. Hey, as any good salesperson could do, I love that. So, um, I would look at the comparables, especially if you're really concerned about return on investment. Look and see what the other homes in the community have, because if they all have an updated kitchen already, you know, updating your kitchen's not gonna get you more money than they.
Than their value. It just brings you up to their value. But it might get you a lot more than you would get otherwise. And Tammy, I, I hope everybody was really paying attention to that advice. So the only way you can really make a decision about whether or not an improvement will give you a return immediately is really to look at the comparables.
Yeah. And if you thought you could sell your house for 450,000 as. Or you thought you could add a new kitchen for $40,000 and sell it for 520,000? Well that makes sense to do that, but you'd have to look at the market data in order to be able to know Most major publications out there show that bathroom additions give you a return of anywhere from 58 to.
Uh, 67% and kitchen remodels give you a return from anywhere from 62% to 80%. So, to answer Liz's question, it sounds like she might be better off to invest money in the kitchen instead of the bathroom. But Liz, my suggestion is, Get with us. Let us know exactly what you're planning to do, exactly what the budget is.
Let us do some work on the comparables so that we will be able to give you the best advice possible. Tammy Slay, thank you very much for being with us on today's show. I genuinely appreciate it. Thank you. It was a chore to be here. We'll be back next week on Saturday at 9:00 AM and we look forward to talking to you then Atlanta.
We hope you have a great week, Tammy, and I hope you have a great week too. Thank you. You too.