Atlanta home prices listed as second most "overvalued" in nation (Decatur: real estate, apartments)

[jeoff]

Recent analysis from a firm specializing in home values concluded that Atlanta home prices listed as second most "overvalued" in nation at 13% overvalued. Not really terrifying news-but it does suggest that prices will not continue going up at current rate (but, if they do, things could get scary--especially if there is a dip in the economy). Which areas do you think are most overvalued? (Decatur, maybe?)

Real Estate: Top 10 Most Overvalued Cities - Barron's

[bu2]

Originally Posted by jeoff

Recent analysis from a firm specializing in home values concluded that Atlanta home prices listed as second most "overvalued" in nation at 13% overvalued. Not really terrifying news-but it does suggest that prices will not continue going up at current rate (but, if they do, things could get scary--especially if there is a dip in the economy). Which areas do you think are most overvalued? (Decatur, maybe?)

Real Estate: Top 10 Most Overvalued Cities - Barron's

Atlanta is pretty expensive for not being on the coast. Hard to understand why, but that seems to be a recurring issue. I don't think it means home prices are going down.

[ATLTJL]

Old Fourth Ward/Inman Park.

Nice area, but absolutely no reason prices should be as high as they are.

[cwkimbro]

Their analysis is wrong and I see why Atlanta is at the top of the list.

They are judging single-family homes only.

Because Atlanta's low-density build of single-family homes there is a limited supply. Most people get pushed further out or priced into condos/apartments.

You can't compare the single family home market only to the general incomes of the area, because that market skews towards the wealthier side of the spectrum.....especially when supply is as small in Atlanta as it is.

Now if we were a northeastern city and had a much larger supply of denser single family homes, then supply would bring overall prices down a bit. As-is a comparison to median incomes means nothing, because there isn't enough single-family housing for everyone in the city. It will undoubtedly skew for incomes higher the median income for the area.

[jeoff]

Originally Posted by ATLTJL

Old Fourth Ward/Inman Park.

Nice area, but absolutely no reason prices should be as high as they are.

It's funny, moving back intown, the level of gentrification in O4W totally caught me totally by surprise--I remember in the 90s turning down a wrong road for a tree planting project and my car getting swarmed by women and kids selling drugs--now you see Masseratis there--not for drugs, but to drop kids off to play soccer! I imagine that closing the housing projects paved the way for most of it.
For what it's worth, Old Fourth Ward/Inman Park prices make sense to me--they are gentrified areas that are about as close to the city's core as you can get--plus with Inman Park you get pretty good schools and O4W probably has more untapped potential than any of the higher priced neighborhoods.

[Ant131531]

Isn't this metro area though and not just city? They are saying home prices in the entire metro area are overvalued.

[Ant131531]

Originally Posted by jeoff

It's funny, moving back intown, the level of gentrification in O4W totally caught me totally by surprise--I remember in the 90s turning down a wrong road for a tree planting project and my car getting swarmed by women and kids selling drugs--now you see Masseratis there--not for drugs, but to drop kids off to play soccer! I imagine that closing the housing projects paved the way for most of it.
For what it's worth, Old Fourth Ward/Inman Park prices make sense to me--they are gentrified areas that are about as close to the city's core as you can get--plus with Inman Park you get pretty good schools and O4W probably has more untapped potential than any of the higher priced neighborhoods.

The supply is super low in Inman Park and O4W. That's why rents and home prices are getting so expensive.

The biggest problem with Atlanta is, half the city is the ghetto and no one wants to live in the ghetto so the actual housing supply is even lower since everyone wants to live in the same 5 or 6 neighborhoods. We need more condos and apartments, but they just aren't being built fast enough in these areas. With Inman Park, there are so few lots because most of the neighborhood is single family homes.

[cwkimbro]

Originally Posted by Ant131531

Isn't this metro area though and not just city? They are saying home prices in the entire metro area are overvalued.

You might be right.

If its metro area, I'm left baffled. Most comparisons to cost of living, income, and home prices show us to have cheaper homes than our northern counterparts.

So why are homes in fast growing areas being devalued compared to areas much more expensive in the north?

[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!

[Clayton white guy]

There are also plenty of nice affordable homes with reasonable commutes to Downtown Atlanta here in beautiful Clayton County!