Annual Atlanta Real Estate Summit
On Friday, February 2, 2018, the Atlanta Business Chronicle and Atlanta REALTORS® held the 7th Annual Real Estate Summit at the Atlanta Federal Reserve. A special lineup of speakers and panelists showcases an analysis of market trends from 2017, industry panel and keynote discussion of strategy and planning for 2018. Special thanks our great speakers, Domonic Purviance of the Federal Reserve Bank of Atlanta and John Bevilaqua of Creative Marketing Strategies for there great presentations. Additionally, we appreciate the panel members Robbie Ashe of the MARTA Board of Directors, State Senator Brandon Beach, Michael Paris of the Council for Quality Growth, and Moderator David Rubinger of the Atlanta Business Chronicle for their contributions.
The event started with speaker Domonic Purviance, Sr. Financial Policy Analyst, Supervision & Regulation Division at the Federal Reserve Bank of Atlanta. Through a slideshow of economic indicators, he illustrated how most sectors have had positive growth over the past year, which is a leading indicator for home sales. Atlanta's job growth was the third largest in the country for the previous year, behind Dallas and New York. The largest growth sector jobs in the Atlanta market was in the Professional and Business Services sector, where Atlanta ranked second in the country in terms of growth. One relevant sector that has not yet seen a return of jobs is in construction.
Interestingly, Atlanta is still the third largest market for new home starts in the country, behind Dallas and Houston. This growth in starts started in south Forsyth County, up the 400 North corridor. This growth has spread into a ring around the city in the neighboring counties, and the affordability of this new supply is driven by the lot supply. Mr. Purviance observed how ten percent of the vacant developed lots in the country are in the Atlanta market (73K lots).
Mr. Purviance noted that the housing market is fundamentally different than 10 years ago, and inventory is the greatest issue facing the industry. Sales are increasing, but the inventory is not being replaced to support the sustained demand. The silver lining to this dynamic is that the market isn’t getting overbuilt. The other difference from a decade ago is that low credit scores are not getting mortgages as they were. Additionally, home prices are now above the previous peak levels. This new price point is largely due to the low inventory level, currently at 3.5 months of supply (4-6 months is a balanced level of supply).
Affordability in the Atlanta market has remained steady due to the low interest rates. Atlanta has been fourth nationally in terms of affordability, which has been best in the same ring around the city where the new home starts are developing. The greatest risks to this sustained growth includes is the tight supply, which will limit the transactions possible. Additionally, rising interest rates will cut into the affordability of the area and may lead to a contraction of demand.
Speakers and Panelists:
MARTA Board of Directors
Robbie Ashe represents both plaintiffs and defendants in state and federal courts. He focuses on issues involving politics, governments and governmental authorities throughout Georgia, particularly the City of Atlanta, metro Atlanta governments and the Georgia General Assembly.
In 2010, Robbie was appointed by Atlanta Mayor Kasim Reed and the Atlanta City Council to serve on the Board of Directors for the Metropolitan Atlanta Rapid Transit Authority (MARTA). Robbie was elected by his colleagues to serve as the Chairman of the Board for 2014, 2015, 2016 and 2017.
State Senator Brandon Beach
Sen. Brandon Beach, a conservative Republican, was first elected to the Georgia State Senate in 2013. He represents District 21 which includes portions of Cherokee and Fulton counties.
In the Senate, Beach serves as the Chairman of the Economic Development and Tourism Committee and as the Secretary of the Transportation Committee. He is also a member of the Regulated Industries and Utilities, Science and Technology and MARTOC committees.
Senator Beach brings a common sense, solutions-oriented approach to the legislature. During his tenure, he has helped in passing several major tax cuts, while also bringing major improvements to District 21. Senator Beach is committed to serving the people of his district and ensuring that the government does not negatively affect them.
Creative Marketing Strategies
John P. Bevilaqua is Founder and CEO of Creative Marketing Strategies, an Atlanta based consulting and communications practice. John has spent thirty five years in the sports marketing, management and communications field having worked at Coca-Cola USA and he was VP Communications at the 1984 Los Angeles Olympic Organizing Committee. He has been involved in ten Olympic Games and has traveled to over 80 countries.
Over the past decades John's firm has negotiated many significant sponsorship agreements, mostly around major sporting events such as the Olympics and World Cup. CMS has enjoyed working relationships with Fortune 200 companies such as AT&T, The Coca-Cola Company, 3M Corporation, EDS, Gulfstream Aerospace, IBM and many others. CMS has also acted as executive consultant to LakePoint Sports and Jacoby Development.
He was initiated into the Sigma Chi Fraternity (Delta Theta Chapter) at the University of Chattanooga where he holds a BS in Business Administration. He also has a Master';s in Business Administration and PhD. in Business Management.
Council for Quality Growth
President & CEO
Michael Paris, a Cobb County native, took the Council's helm in late 2003 and has worked to expand the Council and to spread its mission of promoting balanced and responsible growth throughout the metro region and the state. With a degree in real estate from Georgia State University, Michael has more than 35 years of experience in real estate development, brokerage, land-use planning, and association management.
Michael is involved in numerous community and professional activities. His affiliations include the Board of Directors for YMCA of Metropolitan Atlanta, the Cobb Chamber of Commerce, the Gwinnett Chamber of Commerce, and the Georgia Chamber of Commerce. He is a member of the National Association of Industrial and Office Properties, the Urban Land Institute, an Association Member of the Board of the Atlanta Commercial Board of REALTORS®, and a graduate of both Leadership Cobb and Regional Leadership Institute.
Michael and his wife Kim live in Marietta and have two grown children.
Federal Reserve Bank of Atlanta
Sr. Financial Policy Analyst, Supervision & Regulation Division
Mr. Purviance serves as a Senior Financial Policy Analyst within the Supervision and Regulation division at the Federal Reserve Bank of Atlanta. In this function, Mr. Purviance is primarily responsible for conducting an ongoing assessment of risks associated with residential real estate markets and the potential impacts they may pose to the financial system. This includes analyzing conditions within individual markets as well as the impacts of external forces on real estate. In addition, Mr. Purviance is responsible for developing real estate related analytical reports and tools utilized throughout the Federal Reserve System to aid in risk surveillance and banking supervision.
Prior to joining the Federal Reserve, Mr. Purviance served as the President of Market Advisory Services, LLC, a research and consulting firm that provides analytics for developers, homebuilders, and lenders to assist in property valuations and to help assess the viability of submarkets for new development. Mr. Purviance also previously served as a Senior Consultant at Metrostudy, a residential real estate research company, where he was responsible for the firm's consulting operations in the Atlanta region.
Mr. Purviance received his B.A. in Urban Planning from Morehouse College and his Masters in City and Regional Planning for Georgia Tech.
Atlanta Business Chronicle
Market President & Publisher
David Rubinger was named market president and publisher of Atlanta Business Chronicle in 2015. Rubinger rejoined the Atlanta Business Chronicle and parent company American City Business Journals after 16 years in private business. He originally joined Atlanta Business Chronicle in 1989 as a staff reporter, managing editor and eventually editor from 1995 to 1998. Rubinger also served as a senior vice president for the Atlanta office of public relations firm Ketchum, was vice president of corporate communications for Equifax Inc., and most recently ran Rubinger Inc., his own marketing firm based in Atlanta.