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Old 07-01-2016, 09:31 AM
3,263 posts, read 4,677,534 times
Reputation: 1892


Originally Posted by abalashov View Post
I find this hard to believe. I had a 1 BR condo in Midtown that was worth $160K when I financed in May 2007 (perversely, before the first wave of the subprime crisis-related Fed rate cuts). When I strategically defaulted on it in summer 2015[1], it appraised at $85K. It's around $90K now.

[1] In part due to being 48% upside down and most alternative courses of action being forbidden by the HOA (e.g. a leasing gap and building chronically being leased to the limit).
What sort of condo can you get in Midtown for $90k? Even studios in the cheapest buildings bottom out around $100k these days. In the mid-2000s vintage building 1/1's are running $250k.
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Old 07-01-2016, 11:25 AM
Location: Atlanta
149 posts, read 134,004 times
Reputation: 197
I recently looked into purchasing a home in West End. 5 days on the market, and the seller's agent wouldn't even show it to us because the bidding pool was already large.
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Old 07-01-2016, 11:41 AM
34 posts, read 27,935 times
Reputation: 47
I believe it. We sold our builder-spec, tract house in the Sharpsburg area in under a week and homes in Newnan barely last that long. We're now looking to find a home on the East side of town and its been a headache to say the least. We're close to giving up and just waiting until the late Fall early Winter when things slow down.
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Old 07-01-2016, 11:50 AM
4,011 posts, read 2,533,451 times
Reputation: 1967
People believe everything they read on the Internet
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Old 07-01-2016, 12:20 PM
Location: Mableton, GA USA (NW Atlanta suburb, 4 miles OTP)
11,319 posts, read 22,500,791 times
Reputation: 3886
Originally Posted by fieldm View Post
People believe everything they read on the Internet
I believe you.
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Old 07-02-2016, 07:51 PM
5,121 posts, read 3,320,597 times
Reputation: 3408
I also know that in our neighborhood, it's an average of 4-5 days from listing to sale/contract. This is for a 7- to 11-year-old, two- or three-bedroom townhome on three floors with a one-car garage for a little over $200k in Upper Westside (apparently, that's the name now).
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Old 07-03-2016, 03:33 AM
352 posts, read 136,282 times
Reputation: 263
I didn't expect Atlanta to rank no. 1
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Old 07-03-2016, 04:48 AM
Location: Gwinnett County, Georgia
333 posts, read 229,404 times
Reputation: 479
The affordable, existing inventory that we're finding is primarily a lot of junk properties that some investor bought for $50K cash, who put in $10K in low-end paint, carpet, fixtures and appliances and returned to market as a "beautiful renovation." Now even those fixer uppers that investors are buying are hard to find. My owner-occupant clients are encountering bidding wars on anything half decent, even in poorer performing school clusters. Some of them try to abandon their plans to buy when they learn of the fierce competition among cash-bearing investors for properties priced up to $200,000 and then learn how hard it is to also find a rental in this market.

Another issue. Many of these town home communities are actually condominiums (a form of ownership, rather than a building style) that have to be FHA-approved in order for a buyer to buy them using an FHA Mortgage, one of the most widely used mortgage loan products. We're finding that few of those condo communities have that approval. So the buyer can't buy. You know these properties because they're often priced under $120K.
We often get it done, but buyers are going to need a personal advocate in this market.

Former Falcon Upset with Conditions in New Home
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Old 07-05-2016, 08:58 AM
15,489 posts, read 7,903,178 times
Reputation: 8024
Originally Posted by Mutiny77 View Post
I'm guessing there's some truth to this. I know someone who's in the market for a house in Atlanta and he's having a tough time finding anything, even on the west and south sides. I'm wondering if investors have snapped up a lot of homes on those sides of town and are just sitting on them.
On this, they are.

Many of those abandoned homes on the westside are owned by corporations and individuals who just sit on them and do nothing with them. IMO it would be wise if Atlanta or Fulton County could implement a landbank program to monitor this occurring and ensuring that those homes do not languish in an abandoned state for more than 2-4 years. The house next to the one I own in Atlanta has been vacant since 2008 and is owned by an out of state investor.
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Old 07-05-2016, 11:21 AM
Location: Atlanta
6,562 posts, read 7,684,125 times
Reputation: 4368
I completely believe this.

The issue here isn't price or long-term supply-demand. The issue is merely short-term supply-demand issue from a short-term supply. We have many people looking for fewer homes.

San Francisco's market has actually softened a bit lately. It will likely always be priceier than ours and is certainly more in-demand and in need of new housing units, but the difference is people have increasingly given up on looking for units at those price points.

The issue we have here in Metro Atlanta is we got hit hard in the recession. It put many of our home builders out of business, drove away large portions of a labor pool, and it made the correct companies lose land that was most-ready to develop. It also drove prices down below what it costs to build a new home.

So I think this is a short-term issue. The problem is all the things we needed to be "shovel-ready" for when we become the economic boomers again (and we are in that place now) need to be built back up. More and more homes will be built soon to handle this demand, but companies have to find and re-attract the right labor, make the right land deals, get capital for large developments from scratch.

Now the good/bad is there is a development near me in Lilburn that is selling well, but it feels like to me they are going for $50k more than they would have in the past. The homes are a decent size, but more modest than what we had before the bubble and the lots they are on are tiny and not wooded. I feel like the demand has some pricing power for developers. The good/bad is that housing will be more expensive, but the companies are generating capital faster to make more/larger developments.

Once they catch back up, I think things will be more normal.
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