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Old 08-02-2011, 02:34 PM
 
Location: Ono Island, Orange Beach, AL
10,626 posts, read 11,206,980 times
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From today's Business Chronicle

Staff Writer
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Intown metro Atlanta condominium sales were up in the first half of the year.
Condo closings and contracts in the first half totaled 482 units, according to a mid-year report by Haddow & Co. , an Atlanta-based real estate consulting firm. That compares with 463 units during the first half of 2010 and 368 units during the second half of 2010, the report said.
The Haddow report only looks at condos from downtown Atlanta to Buckhead and east to Decatur.
The gap between supply and demand is tightest for units priced under $300,000, the report said. That market segment represents the majority — roughly 59 percent — of the active inventory, and it is 77.6 percent sold.
There are 93 active condo projects at mid year in intown Atlanta, which comprises 6,817 units. That is a far cry from the height of the market in 2007, when 13,366 units were available as the market began its slowdown.
Haddow's report defines active condos as those that are completed or under construction that have unsold units. Of the total unit number, 2,369 units remain unsold, or 34.8 percent, the report said.
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Old 08-02-2011, 02:57 PM
 
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2,369 available / 482 absorbed = 4.9 half-years of inventory remaining, or 2.5 years, assuming no acceleration.

Seems like it is likely that as the glut of units continues to be whittled down, real prices will start to increase from their currently-rock bottom levels. I imagine average condo sale price will increase somewhat rapidly, but this will probably be illusory as most of the cheaper and smaller units are sold off and only more expensive units remain on the market for new condos.

In the spirit of this thread, I'll post a tidbit of good news from a couple weeks ago:

WABE: Foreign Buyers Attracted to Georgia (2011-07-14) (http://www.publicbroadcasting.net/wabe/news.newsmain/article/1/0/1827956/Atlanta./Foreign.Buyers.Attracted.to.Georgia. - broken link)

Quote:
Georgia is one of the U.S. states that's attracting a growing number of foreign real estate buyers. According to Realtor.com, 5% of all U.S. international sales were made in Georgia in 2010. So far this year, about two percent of all U.S. international sales have been in Georgia.

Realtor.com vice-president Julie Reynolds says Georgia is one of the higher interest states along with Florida, California, Texas and New York.

"A lot of the states that international buyers are interested in have to do with proximity or accessibility to their home country. Cities like Atlanta that have a large international airports are certainly destinations that a lot of international or foreign buyers are looking at."

Atlanta real estate agent Karen Smyth says 10% of her business is from purchasers outside the U.S.

"And that number is growing."
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Old 08-02-2011, 03:27 PM
 
906 posts, read 1,586,681 times
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I wonder what the effect of rising rental rates might be here as well, as increased rents ought to put some additional pressure on consumers considering buying (assuming sales prices and mortgage rates remain static). Aren't rents also going up in Atlanta at present?

What we don't need is any additional condo construction in the short term. One of the benefits of the current recession is the halt it put to out-of-control construction. For now, anyway, it seems like developers got a clue and realized condos aren't going to be as profitable as they initially thought. It looks like they may be targeting new "luxury" apartment rentals intown in the near future.

(BTW, testa, in my condo building it definitely seems to be the case that the smaller, less expensive units were bought first. The lower floors have filled up much more than the penthouse and top floors.)
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Old 08-02-2011, 03:39 PM
 
Location: Midtown Atlanta
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Great news! It's taking time but the inventory will get whittled down.
My question is, when inventory does become scarce, will builders start new construction? Or will they not be able to obtain lending?
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Old 08-02-2011, 03:45 PM
 
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Quote:
Originally Posted by K-SawDude View Post
I wonder what the effect of rising rental rates might be here as well, as increased rents ought to put some additional pressure on consumers considering buying (assuming sales prices and mortgage rates remain static). Aren't rents also going up in Atlanta at present?

What we don't need is any additional condo construction in the short term. One of the benefits of the current recession is the halt it put to out-of-control construction. For now, anyway, it seems like developers got a clue and realized condos aren't going to be as profitable as they initially thought. It looks like they may be targeting new "luxury" apartment rentals intown in the near future.

(BTW, testa, in my condo building it definitely seems to be the case that the smaller, less expensive units were bought first. The lower floors have filled up much more than the penthouse and top floors.)
I wonder how much stomach Atlanta has for this, honestly. Why spend $1,600 a month on rent for a 1/1 when you can buy a 2/2 in a lot of buildings and pay the same amount, even after HOA? But the standard rate in a midrise apartment building seems to be $1,000 these days, so maybe on the high end of the scale it makes sense. The cynic in me wonders if they are basically building them in speculation that the condo market turns around, and the project will be instantly ready for conversion. The big money is always in sales, not leases.

I think Atlanta needs to figure out a recipe for affordable high rise apartments. Screw the swimming pool and gym, charge extra for parking, and use cookie-cutter high rise floorplans reproduced throughout the world. Aim for $1000-$1200/mo rent for a 1/1. I've been to other countries, even poorer countries, and seen plenty of highrises filled with middle class people--why is it impossible in America?
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Old 08-02-2011, 03:49 PM
 
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Very good news indeed. I think a lot of it has to do with getting condo prices right. For a while people were thinking about prices in the stratosphere. In my opinion there's still a lot of demand for intown, condo style living, but the price has to be reasonable.
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Old 08-02-2011, 04:12 PM
 
906 posts, read 1,586,681 times
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Since the following article qualifies as both "Good news" and a piece on housing sales, I thought y'all would want to check this out as well:

Hands-on efforts to raise a neighborhood’s value *| ajc.com
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Old 08-02-2011, 05:01 PM
 
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Wonder how many of those sales are the result of flippers who bought the properties on the courthouse steps. Or by banks who already foreclosed.
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Old 08-02-2011, 05:51 PM
 
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Quote:
Originally Posted by ATL Golfer View Post
Wonder how many of those sales are the result of flippers who bought the properties on the courthouse steps. Or by banks who already foreclosed.
None?

Aren't these all new sales statistics?
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Old 08-02-2011, 08:44 PM
 
Location: Ono Island, Orange Beach, AL
10,626 posts, read 11,206,980 times
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Quote:
Originally Posted by testa50 View Post
None?

Aren't these all new sales statistics?
Regardless, it's folks moving in. I like that.
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