Georgia Prime Markets Report

Engel & Völkers Prime Markets ReportGeorgia, USA

2 Prime Markets Report |Georgia

The Prime Markets ReportGeorgia, USA

Executive Summary

Engel & Völkers is an international real estate firm with global headquarters in Hamburg, Germany where it was founded and its North America headquarters in New York City.

Fueled by growing demand for North American properties among its clients throughout Europe, Asia, Africa and South America, Engel & Völkers has focused worldwide expansion on the continent and has dedicated resources to efforts in the U.S., Canada, and Mexico.

The strategy is supported by market research to identify the potential for establishing an Engel & Völkers brokerage.

In the state of Georgia, where the demand for luxury properties has increased, the Engel & Völkers Prime Markets Report presents data to provide real estate professionals, industry experts, home sellers and homeowners an in depth look at the state’s prime markets

Methodology

The Engel & Völkers Prime Markets Report for Georgia is the result research conducted by the Engel & Völkers North America market research staff. The Report assembles data gathered from a variety of sources surveyed over a period of time. Sources include real estate portals, such as Zillow® for housing data, median sales prices, prices per square foot, and the number of reported listings; the National Association of REALTORS® “Profile of International Home Buying Activity” for information regarding international transactions in the

Methodololgy.....................2Key Findings..................... 3Metropolitan Comparisons......................

5

International Market..........8Prime Markets................... 9Luxury by the Square Foot..................

11

Demographics....................13Income Comparisons........ 14Conclusion........................ 14


United States; the United States Census and American FactFinder Survey for all population and demographics in-formation, including income, salary reports and employment information based on population estimates for calendar year 2012. Assuming top real estate production occurs in markets with high population numbers, the Engel & Völkers market research team, identified the top metro markets in Georgia based on population and compared them based on prime, luxury real estate activity.

Key Findings

Georgia’s home values increased 8.7% in the past year. The median sales price of homes listed is $174,000 and the median sales price for homes sold is $153,400. Homes listed at $606,000 and above represent the top 5% of properties for sale in Georgia.

Homes in the list of top 5% in Georgia exist in all major metro-politan markets identified, and also include lakeside communities and summer destinations surrounding Burton Reservoir, Lake Rabun and Lake Oconee. There are 612 luxury properties, defined as homes priced at $1 million or above in the same metropolitan markets. Atlanta had the highest number of homes in the top 5%.

The greatest source of international transactions according to the National Association of REALTORS® come from buyers in Canada, China, Mexico, India and the UK. In 2013, Georgia rep-resented one of the top eight states in the international transaction markets in which 2% of all international transactions occur.

Research on the highest residential real estate sales prices in Georgia, by county, revealed that the majority of the counties in which median sales prices were the highest comprised a significant portion of the Atlanta metro area.

According to the report, the median sales price for Atlanta’s metro area exceeds the median sales price of all of Georgia’s metropol-itan markets. The median sales price for the entire Atlanta metro area exceeded the next highest Georgia metro area, which is


Savannah by 42%. Also, Atlanta’s median sales price has grown by a rate of 6.4% year-over-year as of March 2014. While the median sales prices to other metropolitan markets in Georgia reside below the state’s median sales price, real estate activity in the market shows that the majority of such markets are improving in price point. For example, Athens, GA and Brunswick, GA each grew by 11.8% and 19.6% year-over-year, respectively, yet fall below the median sales price for Georgia.

Identified as Georgia’s prime market, the Report looked at Atlanta’s international makeup to determine the potential for international real estate transactions. Eighty-one percent of all individuals seeking legal permanent residence status in the state of Georgia applied in Atlanta.

In Atlanta, the top countries of origin among those seeking per-manent residents came from India, Mexico and South Korea.

Interviews conducted with Engel & Völkers real estate brokers representing the market revealed that the international activity has increased over the past three to five years and that sales came from buyers who sought a primary residence.

Also included in the Report is data related to average income among all residents of Atlanta by county. Average family income in Atlanta exceeds both U.S. and Georgia family average income by 27.17% and 38.82%, respectively. Family mean income averages were higher than household mean income averages for Atlanta. However, household income data is far more relatable to real estate professionals as a representation of income by single dwellings as opposed to income by families potentially owning multiple dwellings.

Over the last 10 years there has been a resurgence

of interest from buyers from

Europe, thanks in large part by the

effort put in by the Atlanta Chamber of Commerce and the last few governors

of our State to bring international atten-tion to Georgia.

Scott Askew, Broker and Owner of Engel & Völkers

Intown Atlanta.


Metropolitan Market Comparisons

When median sales prices in Georgia were compared by county, the majority of markets showed improvement in price point. For example, Athens, GA and Brunswick, GA each grew by 11.8% and 19.6% year-over-year, respectively; yet fall below the median sales price for Georgia. A significant portion of the highest sales prices were concentrated in the Atlanta metro area.

225,000Georgia’s Median Sales Price

205,000

185,000

165,000

145,000

125,000

105,000

85,000

$153,400

Change in Median Sales Price over the Last Year

City Percent City Percent

Atlanta +6.4 Columbus -5.2Savannah +24.3 Albany -5.6Athens +9.0 Dalton -18.3Warner Robins +11.8 Rome -0.6Brunswick +19.6 Hinesville 0.0Gainesville +11.7 Augusta -1.8

Sava

nnah

Ath

ens

Metropolitan Comparison

Atla

nta

War

mer

Rob

ins

Brun

swic

k

Gai

nsvi

lle

Col

ombu

s

Alb

any

Dal

ton

Rom

e

Aug

usta

Hin

esvi

lle

median sales price of homes in Georgia in March 2014


Highest Priced Zip Codes Outside of Metro Atlanta

Zip Code Sales Price

31522 Brunswick (St. Simon Island) $298,985

31401 Savannah $258,800

31410 Savannah $216,800

31324 Savannah (Richmond Hills) $211,575

31405 Savannah $206,630

Highest Priced Listings in Georgia

City Sales PriceConyers $28.1M

Ellijay $22.7M

Statesboro $20.6M

Flowery Branch $19.9M

Gainesville $17.5M

St. Simons Island $16.8M

Atlanta $15.9M

Sea Island $15.7M

Suwanee $15.0M

1AlbanyWarner Robins

2Macon

6Augusta Dalton Rome

8BrunswickColumbus

12Athens

13Hinesville

26Valdosta

40Savannah

51Gainesville

432Atlanta

number of million dollar homes per city

Number of Homes in the Top 5%, by City

Hinesville 39

Rome 19

Dalton 20

Albany 8

Gainesville 149

Brunswick 26

Warner Robins 7

Valdosta 61

Athens 49

Macon 8

Savannah 108

Augusta 27

Atlanta 768

Columbus 30


Highest Priced Listings Across Georgia

Albany Athens Atlanta Augusta Brunswick

$1,100,000 $3,650,000 $15,900,000 $3,700,000 $5,100,000$799,900 $2,650,000 $12,900,000 $1,875,000 $2,975,000

$799,900 $1,950,000 $12,900,000 $1,530,000 $2,359,000

$795,000 $1,700,000 $10,950,000 $1,450,000 $2,250,000

$749,900 $1,552,968 $10,500,000 $1,242,000 $1,800,000

$699,900 $1,490,000 $8,900,000 $1,100,000 $1,495,000

$699,300 $1,390,000 $8,900,000 $999,999 $1,350,000

$675,000 $1,350,000 $7,500,000 $985,000 $1,059,000

$599,500 $1,250,000 $7,500,000 $940,000 $995,000

$599,000 $1,200,000 $7,000,000 $900,000 $995,000

Columbus Dalton Gainesville Hinesville Macon$3,500,000 $5,000,000 $17,500,000 $2,074,000 $1,150,000$2,700,000 $2,188,000 $8,495,000 $1,509,000 $1,095,000

$1,950,000 $2,183,000 $4,000,000 $1,500,000 $974,900

$1,580,000 $1,258,260 $3,499,950 $1,495,000 $925,000

$1,495,000 $1,100,000 $3,400,000 $1,450,000 $835,000

$1,495,000 $1,100,000 $3,250,000 $1,393,200 $749,900

$1,189,000 $950,000 $2,950,000 $1,335,000 $689,000

$1,125,000 $895,000 $2,699,900 $1,276,800 $650,000

$995,000 $835,000 $2,490,000 $1,276,800 $599,000

$979,000 $799,900 $2,400,000 $1,200,000 $595,000

Rome Savannah Valdosta

$1,975,000 $3,795,000 $2,500,000 $1,350,000

$1,650,000 $3,400,000 $2,100,000 $989,900

$1,350,000 $2,900,000 $1,942,000 $800,000

$1,300,000 $2,800,000 $1,900,000 $800,000

$1,200,000 $2,600,000 $1,786,400 $750,000

$998,500 $2,400,000 $1,750,000 $657,000

$998,500 $2,399,000 $1,725,000 $599,000

$895,000 $1,975,000 $1,594,480 $499,000

$849,900 $1,975,000 $1,350,000 $475,000

$830,000 $1,970,000 $1,300,000 $465,000

Warner Robins


Shares of the Top Countries of Origin of Total Reported International Transactions

■ Canada

■ China

■ Mexico

■ India

■ United Kingdom

■ Germany

■ Argentina

■ Isreal

■ Australia

■ Korea

■ Brazil

■ France

■ Venezuala

■ Russia

Other

The International Market

According to the National Association of REALTORS® international transactions across the U.S. in 2013 originated from buyers in Canada, China, Mexico, India and the U.K. In 2013, Georgia represented one of the top eight states in the international transaction market in which 2% of all international transactions occur.

Distribution of International Sales by State and Year

2009

5%

10%

15%

20%

25%

30%

2010 2011 2012 2013

■ Florida

■ California

■ Texas

■ Arizona

■ Nevada

■ New York

■ Georgia

■ Virginia


Number of Listings1

USA Georgia Atlanta

3,257,186 127,222 5,525

Percentage to USA 3.91% 0.17%

Percentage to Georgia 4.34%

Number of Listings Over $450K1

USA Georgia Atlanta

433,911 11,039 992

Percentage to USA 2.47% 0.32%

Percentage to Georgia 13.09%

1 per zillow.com, as of May 13, 2014

Our research gives us a full picture of the market which we use to plan our marketing strat-egy and identify the best fit for the Engel & Völkers brand. The research shows where there are several opportu-nities for that to be the case throughout the state of Georgia.

Tim Jones, SVP Market Development

Georgia Median Sales Price by County

Forsyth County$261,375+70.39%

Turner County$250,000+62.97%

Greene County$363,846+137.19%

Fulton County$240,465+56.76%

Miller County$338,500

+120.66%

The Prime Real Estate Market

Atlanta’s metro area markets have the highest median sales price of all of Georgia’s metropolitan markets. In fact, the median sales price for the entire Atlanta metro area exceeded the next highest metro area, Savannah by 42%. We defined the luxury price point by doubling the median sales price in Atlanta ($450,000). This also focused the market to the top 20% of all listings in Atlanta. Also, Atlanta’s median sales price has grown by a rate of 6.4% year-over-year as of March 2014.


Select Atlanta Median Sales Prices by Neighborhood

Neighborhood Sales Price Compared to MedianGarden Hills Buckhead $460,050 +104.47%

Morningside-Lenox Park $541,615 +140.72%

Peachtree Heights East Buckhead $575,000 +155.56%

Peachtree Hills Buckhead $515,000 +128.89%

Select Atlanta Median Sales Prices by Zip Code

Zip Code Sales Price Compared to Median

30306 Druid Hills $508,650 +126.07%

30307 Druid Hills $355,294 +57.91%

30327 Chastain Park/Buckhead $687,850 +205.71%

30338 Dunwoody $358,950 +59.53%

30342 Chastain Park/Buckhead $379,925 +68.86%

$225,000median sales price of homes in Atlanta in March 2014


Median Price per Square Foot, Atlanta Neighborhoods

Neighborhood Median Price

Garden Hills Buckhead $242

Morningside-Lenox Park $290

Peachtree Hills Buckhead $306Peachtree Heights East Buckhead $308

Median Price per Square Foot, Atlanta Zip Codes

Zip Code Median Price

30338 Dunwoody $144

30342 Chastain Park, Buckhead $178

30319 Brookhaven $190

30327 Chastain Park, Buckhead $213

30306 Druid Hills $270

Median Price per Square Foot, Georgia Counties

County Median Price

Forsyth $105

Fulton $132

Greene $152

Miller $225

Turner $226

$119United States

$85Georgia

$91Atanta, GA

$188Seattle, WA

$205Stamford, CT

$217Boston, MA

$219Cape Cod, MA

$226Washington, D.C.

median sales price per square foot

Luxury by the Square Foot

Looking at the median sales price per square foot, the following data compares sales prices across Atlanta neighborhoods and zip codes, Georgia counties, and similarly priced metropolitan markets in other states.


How Many Square Feet Can You Buy In...

Neighborhood $225K $450K $750K $1M

Garden Hills Buckhead 930 1,860 3,099 4,132

Morningside-Lenox Park 776 1,552 2,586 3,448

Peachtree Hills Buckhead 735 1,471 2,451 3,268Peachtree Heights East Buckhead 731 1,461 2,435 3,247


Zip Code $225K $450K $750K $1M

30338 Dunwoody 1,563 3,125 5,208 6,944

30342 Chastain Park, Buckhead 1,264 2,528 4,213 5,618

30319 Brookhaven 1,184 2,368 3,947 5,26330327 Chastain Park, Buckhead 1,056 2,113 3,521 4,695

30306 Druid Hills 833 1,667 2,778 3,704


County $225K $450K $750K $1M

Forsyth 2,143 4,286 7,143 9,524

Fulton 1,705 3,409 5,682 7,576

Greene 1,480 2,961 4,934 6,579Miller 1,000 2,000 3,333 4,444

Turner 996 1,991 3,319 4,425

The luxury price in Buckhead starts at $850,000. In terms of the kind of homes, many that are considered luxury are either very old mansions and homes or very new prop-erties including luxury condos. As far as lifestyle, Buckhead offers high end shopping and nightlife.

Shirley Gary, Owner and Broker Engel & Völkers Buckhead Atlanta


Populations Seeking Legal Residences in the U.S.

Country of Origin Population Percent Receiving Residence

Mexico 146,406 14.19%

China 81,784 7.93%

India 66,434 6.44%Philippines 57,327 5.56%

Domincan Republic 41,566 4.03%

Populations Seeking Legal Residences in Georgia

Country of Origin Population Percent of All Those Receiving Legal Residence in Georgia

Mexico 2,854 10.92%

India 2,234 8.55%

South Korea 1,337 5.12%China 1,067 4.16%

Nigeria 995 3.81%

Populations Seeking Legal Residences in Atlanta

Country of Origin Population Percent of all those Receiving Legal Residence in Georgia, Atlanta

India 1,769 6.77%, 8.31%

Mexico 1,593 6.10%, 7.48%

South Korea 953 3.65%, 4.48%Burma 919 3.52%, 4.32%

Nigeria 917 3.51%, 4.31%

1,031,631people seeking legal residence in the United

26,134people seeking legal residence in Georgia

21,289people seeking legal residence in Atlanta

Atlanta Demographic Information

Atlanta represents a highly diverse population. The international origins of those seeking legal residence status indicates a potential for real estate sales from buyers abroad. Eighty-one percent of all individuals seeking legal permanent residence status in the state of Georgia applied in Atlanta.


■ US

■ Georgia

■ Atlanta

■ Less than $10,000

■ $10,000 to $14,999

■ $15,000 to $14,999

■ $25,000 to $34,999

■ 35,000 to $49,999

■ $50,000 to $74,999

■ $75,000 to $99,999

■ $100,000 to $149,999

■ $150,000 to $199,999

■ $200,000 or more

$10,000

$20,000

$30,000

$40,000$50,000

$60,000

$70,000

$80,000

Atlanta Household Income

Average family income in Atlanta exceeds both U.S. and Georgia family average income by 27.17% and 38.82%, respectively. Average family income was higher than the average household income for Atlanta. However, household income data is far more relatable to real estate professionals as a representation of income by single dwellings as opposed to income by families potentially owning multiple dwellings.

Median Mean

Household Income

Median Household Income Distribution, US



■ $10,000 to $14,999

■ $15,000 to $14,999

■ $25,000 to $34,999

■ 35,000 to $49,999

■ $50,000 to $74,999

■ $75,000 to $99,999

■ $100,000 to $149,999

■ $150,000 to $199,999

■ $200,000 or more


■ $10,000 to $14,999

■ $15,000 to $14,999

■ $25,000 to $34,999

■ 35,000 to $49,999

■ $50,000 to $74,999

■ $75,000 to $99,999

■ $100,000 to $149,999

■ $150,000 to $199,999

■ $200,000 or more

Median Household Income Distribution, Georgia

Median Household Income Distribution, Atlanta


Conclusion

As a luxury real estate market, Georgia offers opportunities for real estate agents, brokerages and brands to transact at the pre-mium market price points. Conditions are prime for increased international activity. International and luxury real estate firm, Engel & Völkers has identified Georgia as a primary level market in its North America expansion and has opened offices in Atlanta as a result. Based on its research the firm plans to further develop the metro Atlanta, as well as Savannah, Augusta and Gainesville.

Engel & Völkers North America 430 Park Avenue, 11th FloorNew York, NY 10022 Tel: + 1 212 234 3100Email: [email protected]

Engel & Völkers Buckhead Atlanta

3490 Piedmont Road, Suite 1000Atlanta, GA 30305Tel: + 678-373-0739Email: [email protected]

Engel & Völkers Intown Atlanta

Atlanta 1411 N Highland Avenue NEAtlanta, GA 30306 Tel: + 1 404-874-6357Email: [email protected]

Documents

Georgia Prime Markets Report