Atlanta home prices listed as second most "overvalued" in nation (Roswell: 2014, apartment)

[jeoff]

Originally Posted by Clayton white guy

Half ghetto? Five or six neighborhoods? Sorry, I really don't follow. That may have been true in 1991, but so much of the city seems to be on the upswing! If you could have seen Old Fourth Ward/ Sweet Auburn, East Atlanta, Kirkwood, East Lake, even Grant Park, Midtown, and Ormewood Park twenty years ago! Heck, these days West End, Capital View Manor, and Sylvan Hills are even being talked up as "the next big thing". Since I was in high school in the early 90's, even to when I taught in the Edgewood/ Kirkwood area a decade ago, huge sections of the City of Atlanta have gone from "down on their heels" to sought after. I never expected the unprecedented uptick in fortunes for the city's east and even southeast sides. Driving down Moreland Avenue the "nice" frontier seems to be all the way almost down to Starlight Drive-in. Many parts of the near westside (re-christianed "West Midtown") have tons of new development. The once maligned Bolton Road corridor is seeing tons of development. The old Limbergh Plaza area is seeing redevelopment off Piedmont Avenue/Road. Never before in this Atlanta native's life time have there been SO MANY viable choices within the City of Atlanta. It excites me! Yea Atlanta!

Yep!

[OuiOui]

Well, seeing as a 13xx sq ft home sold for $169K in Vine City, I agree with the headline!

[Iconographer]

Frankly l can't understand the premise. Home values are driven by demand; it's not some arbitrary figure.

[architect77]

Yes, homes are going for $700k in Kirkwood, East Atlanta and Grant Park.

But driving there is a hideous experience. Memorial Drive and DeKalb Ave and Boulevard look like hell. That part of town looks like an absolute dump.

And I must be the only one photographing the trash along every interchange with I-20 and sending it to publicworks@atlantaga.gov asking them to clean it up.

Please all of you start getting involved and photograph and email missing street signs, burned out traffic signal bulbs and trash strewn along highways.

I regularly request fixes from the City of Atlanta and GDOT.

The next time you're driving up I-85, look over at the access road heading north. They finally replaced all of the faded overhead green signs, thanks to me. I sent them pictures for 2 years.

If you want anything done in this town (with one of the most horrible work ethics of any US city), you gotta do it yourself.

[AnsleyPark]

I fail to understand how homes are over priced if the demand is there for them at the selling price...

[bu2]

Originally Posted by AnsleyPark

I fail to understand how homes are over priced if the demand is there for them at the selling price...

Well there was demand for them at those prices in 2008--and we know what happened.

I just don't think his analysis indicates a problem here.

[AnsleyPark]

Originally Posted by bu2

Well there was demand for them at those prices in 2008--and we know what happened.

I just don't think his analysis indicates a problem here.

That was a lending issue. They were not then over priced for the market, it was that underwriting failed us.

[Iconographer]

Originally Posted by AnsleyPark

That was a lending issue. They were not then over priced for the market, it was that underwriting failed us.

Yes, this.

[bargainbeauty]

I believe it.

[jeoff]

Originally Posted by AnsleyPark

That was a lending issue. They were not then over priced for the market, it was that underwriting failed us.

But isn't that is sort of the point of this sort of analysis?--when someone "buys" a home--they really don't own it--the bank does (until it's paid off)--the bank is really the one taking most of the risk--so they need to evaluate if incomes/local-national economy justifies the bank buying the home--if fundamentals are too out of whack--banks need to be pickier about the loans, which will put a damper on home prices--I think that is what information like this is used for.

That said, I don't think an estimate of 13% overvalued is that scary--if true, it may just mean that prices will not continue to go up, but not tumble.