Good News in Housing for Georgia Market

There is no shortage of pundits who continue to point out the failing housing market and declining U.S. house prices. However, a closer look at the numbers produces a far steadier picture of the housing market in the state of Georgia.

The most recent housing report with one of the largest samplings of housing units was completed by the Office of Federal Housing Enterprise Oversight (OFHEO). This report, known as the Federal House Price Index Report, indicates that Georgia posted a surprising 3.54 percent appreciation in housing prices in the last year.

The figures were released recently by OFHEO director James B. Lockhart as part of the quarterly report analyzing housing price appreciation trends.

The overall view of the national housing market is less than stellar, although not as alarming as some past reports from different organizations with smaller sampling.

Despite the negative indicators of some real estate markets, it appears that Georgia is holding its own with not only the surprising past year appreciation of 3.54 percent, but a cumulative appreciation of 25.55 percent over the last 5 years. Even on a smaller scale, the Atlanta region has seen an increase of 2.61 percent over the last year and a 20.18 percent appreciation over the last 5 years.

The only negative note for Georgia homeowners is third quarter results for 2007. Georgia real estate barely makes it into negative appreciation for the third quarter of 2007, the equivalent of a mere $25 in value on a $250,000 home, hardly a cause for major concern.

As Lockhart points out in his report, "Many of the cities and states experiencing the sharpest declines this quarter were the same cities and states experiencing the sharpest increases just a couple of years ago, suggesting some price corrections in those markets."

Job growth is another factor that fuels continued housing appreciation. In 2007, Georgia is ranked 10th in job growth nationwide with 67 percent of this growth concentrated in the Atlanta region. The Atlanta metropolitan area added 890,000 people from 2000 to 2006, more than any other metro area in the country, according to census estimates. While roughly a third of metro Atlanta's growth came in the form of births, newcomers from outside the region drove most of the increase.

So, despite the perception of a declining national housing market, the Georgia real estate market is maintaining a strong hold by leading in job growth and maintaining slow and steady housing appreciation.

Brian Patton, CCIM is a broker, author, and lecturer on commercial real estate topics. The entire housing index report of the OFHEO is available on his Web site at www.CapitalListings.com.