Condo Prices in ATL will go down in next 6 months? (Atlanta: sales, real estate market)

[Tesh]

Hi! I'm planning to buy a condo in ATL in next 3-5 weeks. I have been hearing from lof of people that it's better to wait for few more months as the real estate market will melt down and that would be a good time to buy. But personally looking at the situation, I don't think it's going to get any better. Any thougts? Apart from that, the morgage rates are dropping down. I'm looking to buy a condo in Buckhead, Linbergh, midtown area. I have been hearing that lot of development is taking place in these areas and they are up coming hip area! what's your thought on. Thanks!

[LoveMiami]

do not worry it wont go down. it is very affordable right now and there is so much demand for condos.
it will go up within 1 to 2 years. so if you buy now u will be set.

[atlantagreg30127]

Originally Posted by Tesh

Hi! I'm planning to buy a condo in ATL in next 3-5 weeks. I have been hearing from lof of people that it's better to wait for few more months as the real estate market will melt down and that would be a good time to buy. !

This has been discusses a few times in the forums lately. Really, it's like the stock market - you never quite know exactly what's going to happen.

My own personal views seemed to match those of a couple of folks that I know in real estate: There are too many high priced highrise buildings going up in the area where the 1BR/1BA units *start* at around $200,000.00 and go up from there. Builders are focusing heavily on "luxury" units with granite countertops, Italian marble accents, and spa-type ammenities and pools. There's a lack of any new developments of affordable condos, unless you see the condo conversions (apartments that have been converted to condos), and you pretty much always want to avoid those as they're not as well built as a dedicated condo building.

So the THEORY is - that 1 to 2 years from now, all of these new high rises will be completed, and probably a few more will be underway as well. There won't be the large number of luxury condo buyers moving here that they think there will be now. Sales will be sluggish, and then, prices will drop. That is, if you're in the market for a luxury condo at all. But, there are variables....

For instance, one woman posted not long ago who lives in a condo that's near the "Buckhead Triangle" area which is about to undo a massive transformation into Atlanta's version of a Rodeo Drive shopping district. Chances are, any condo within walking distance of this area will RISE in price, especially as the construction of that area nears completion. Likewise, any place that is within walking distance of a MARTA rail station with shopping (such as the Lindberg area) will get top dollar. Other slightly more out of the main path areas may very well drop once this over saturation of new condos hits the market. While it's not a direct market and comparison to Atlanta, this is currently happening in Miami right now.

Remember there are older condos that were around long before Atlanta's "condo boom", too... and while people are trying to make a buck off of those, they're usually much more affordable NOW. You can usually get a 2BR/2BA roommate floorplan unit for the same price as the new condos are charging for a 1BR/1BA. You may not get a lot of the fluff-ammenities, but who really uses all of those, anyway? The problem is finding them. You do see them listed on Craigs List from time to time, but the realtors I've talked to about it say they get sold pretty quickly if they're in a decent area.

[bungalowgirl]

no one knows what the market will be like in the next 6 months. If you find something you like and feel its a good price...and that the area is desireable, you should be fine. Location, Location, Location is still key when it comes to homes like Condos.

[CityFan]

Originally Posted by atlantagreg30127

Remember there are older condos that were around long before Atlanta's "condo boom", too... and while people are trying to make a buck off of those, they're usually much more affordable NOW. You can usually get a 2BR/2BA roommate floorplan unit for the same price as the new condos are charging for a 1BR/1BA. You may not get a lot of the fluff-ammenities, but who really uses all of those, anyway? The problem is finding them. You do see them listed on Craigs List from time to time, but the realtors I've talked to about it say they get sold pretty quickly if they're in a decent area.

That proves the theory that as the area is building out, the real property prices will go up too. Yes, there are lower priced older condos in town, but if you look at how much they paid in the first place and figure out appreciation in the value, you will be surprised. My perception of the condo market is that prices for entry level condos will remain stable and high end condos will be tougher to sell with higher rewarding though because newly built entry level condos are still affordable to many middle class families. The only issue with in-town condo market is how to set the city apart from suburbs, i.e., amenities, conveniece, safety, and education (such as learning opportunities that suburbs are unable to provide due to less populated) which attracts more middle class families to move in town.

[noah]

We are under contract on a 2bd/2bath foreclosure in a older high rise building with all the amentities in Midtown. I think most who feel prices will go down feel this way because of all the new buildings going up, only time will tell. But if you get in at the right price and the right property I am sure you will be fine. The building we are buying in has gone done in value the last two years. I know one unit sold for $165k and the guy had paid almost 200k a few years ago..but just recently it seems like demand in the building is increasing.

[CityFan]

Foreclosure sales don't reflect provailing market prices. It's an extreme case. Most people can't wait until next foreclosure to come out before they buy in a condo. I would say overall market has an upswing trends.

[jxu66]

Atlanta overall condo market is not very good for the short term. There are just too many condos built since 1997. But it does not mean that specific condo not doing well.

Slow sales threaten Intown condo market, report says - Daily Report

[CityFan]

[quote=jxu66;1269575]Atlanta overall condo market is not very good for the short term. There are just too many condos built since 1997. But it does not mean that specific condo not doing well.

Slow sales threaten Intown condo market, report says - Daily Report[/QUOTE
Excerpt from the article:

"Despite the market’s general weakness, several developments have performed quite well. They include TWELVE at Centennial Park; Aqua at 10th and West Peachtree streets; Carlyle Woods at North Druid Hills and Briarwood roads; The Stacks at Fulton Cotton Mill; eon at Lindbergh; Studioplex on Auburn; and The Atlantic at Atlantic Station.

“These projects generally offer an affordable price point, unique product and distinctive location,” the report explains.

“You can’t paint the condo market with a broad brush … some developments are doing well because there’s something special about them,” Haddow said. "

The bottom line is that anything affordable to and likable by middle class families will be sucessful. Developers can't be too greedy. Not many people will be fooled by them.

[Atlantasfinest]

[quote=CityFan;1270207]

Originally Posted by jxu66

Atlanta overall condo market is not very good for the short term. There are just too many condos built since 1997. But it does not mean that specific condo not doing well.

Slow sales threaten Intown condo market, report says - Daily Report[/QUOTE
Excerpt from the article:

"Despite the market’s general weakness, several developments have performed quite well. They include TWELVE at Centennial Park; Aqua at 10th and West Peachtree streets; Carlyle Woods at North Druid Hills and Briarwood roads; The Stacks at Fulton Cotton Mill; eon at Lindbergh; Studioplex on Auburn; and The Atlantic at Atlantic Station.

“These projects generally offer an affordable price point, unique product and distinctive location,” the report explains.

“You can’t paint the condo market with a broad brush … some developments are doing well because there’s something special about them,” Haddow said. "

The bottom line is that anything affordable to and likable by middle class families will be sucessful. Developers can't be too greedy. Not many people will be fooled by them.

And so far so good . Easy to rent out & located in a diverse area (Inman Park/Old 4th Ward) with tons of amenities outside of just the Historic building it's located in. With great original features that all "true" lofts have. Not these "soft" loves developers have been throwing up all over the place.