Dacula Home Prices on the Rise, Still Well Below Market Peak

It has been several years since the housing bubble burst, but home values have been very slow to recover locally.

In Dacula, the average home value stands at $179,300 as of September 2013 according to data provided by Zillow. While that number represents an 18.9 percent increase year-over-year, it is still well below the May 2007 average of $226,000.

Local realtor Matt Hermes emphasized the Zillow data is an overall snapshot of market conditions and does not necessarily reflect the change in values experienced by most homeowners. However, Hermes does expect to see moderate increases in Dacula area home prices in the upcoming months.

"My impression of the home values for the coming year are that we will see a slight increase in home values over the next six months (during the winter selling season) and a then a flattening of pricing heading into the spring of 2014," he said.

That expectation of flattening prices, he explained, is due in part to his belief there are many sellers waiting on the sidelines who will enter the market in 2014.

"This will cause a large influx of homes to come on the market which will level off pricing," Hermes said. Add anticipated new construction in the area to the equation and prices will not increase that much, he added. 

According to Zillow, 95 percent of homes in the 30019 zip code increased in value during the past year -- a 40.8 percent year-over-year improvement. Nearby communities have also fared well. Prices in Auburn have gone up 16.9 percent to an average of $99,500. Buford home values now average $126,300 -- a 16 percent increase from September 2012.

Hermes expects to see that trend continue over the short term despite the potential influx of sellers.

"I would expect a 4-6 percent appreciation over the next year and then continue this trend for a few years," he said.

An upward trend is also expected to continue at the national level. Of the 252 markets covered by the Zillow Home Value Forecast, 223 -- including the metro Atlanta area -- are expected to see increases in home values. Overall, home values nationwide are back to October 2004 levels -- a 16.2 percent decrease from the May 2007 peak.

Have home prices recovered significantly in your neighborhood? How long do you think it will take before your home's value again reaches where it was before the housing bubble burst? Let us know in the comments.

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