Ben Hirsh was recently featured in the Atlanta Business Chronicle for a Q&A on the state of the “Luxury Market” (above $1 million). Ben is a leading Realtor in the Buckhead market, which accounts for 35% of Metro Atlanta’s sales over $1 million. A condensed version of his interview was published here and the full interview is below:
ABC: Describe the overall state of the luxury/$1 million-plus home market in metro Atlanta in the past year.
Ben Hirsh: The luxury market in Buckhead is strong – for desirable homes that are priced and marketed correctly. By the end of the year we will have had close to 400 sales over $1 million (for all residential property types). This will narrowly exceed the 382 sales we saw in 2015.
ABC: What were the ‘hot’ areas/neighborhoods of metro Atlanta for luxury/$1 million-plus homes?
Ben Hirsh: Buckhead as a whole dominates the luxury market with 35% market share. Within Buckhead, Chastain Park has seen the biggest increase in luxury sales over the last 2 years.
ABC: Who are the luxury buyers this past year (in terms of demographics)?
Ben Hirsh: Buckhead has always had a large market of self-made small-to-medium business owners. It’s not uncommon for a cash buyer of a $5-7 million home in Buckhead to be someone you have never heard of.
ABC: How did buyers in this sector of the market finance their home purchases for the most part?
Ben Hirsh: 14% of these buyers paid cash with the balance obtaining mostly conventional mortgages with 20-25% down.
ABC: Are there any other important trends you see developing?
Ben Hirsh: Since 2010 there has been persistently high inventory of luxury homes. Since that time there have consistently been 300-400 homes for sale at any given time in Buckhead with asking prices over $1 million. The only real fluctuation in that number is seasonal; January is the low mark and June is the high point. Over the last 2 years, inventory is up year over year which offsets the gains in additional sales. With inventory of luxury homes increasing, you have to know your competition. Have a better product, better marketing, and the right price if you want to attract the right buyer.
ABC: What can we expect to see in 2017?
Ben Hirsh: In 2015 the number of luxury sales in Buckhead for all property types rose 16% over the previous year. This year I expect to see a modest 2-3% increase and next year I expect about the same. We will break through 400 luxury sales in Buckhead for the first time. The market will remain very balanced between buyers and sellers.
For Sale: Sterling Hall – $4.9 million
For Sale: 3220 Habersham Rd | $1,595,000
The spirit of Buckhead heads forward. This is the way it has been, and perhaps this is the way it will always be. The spirit of Buckhead points forward. You see it in the way we work, and you see it in the way we play. The reach is always extending further. The search is for excellence and beauty and grace and vibrancy.
We are a community of individuals. We are diverse, we are dynamic, and we are discerning. We are builders. We are connected to one another with a common bond. A common dream. A common quest. Pointing life in one direction. Forward.
