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Old 03-31-2012, 05:27 PM
 
906 posts, read 1,745,873 times
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Thought I'd start an ongoing thread for updates on the status of Atlanta's housing market during this year. Hopefully, it will be increasingly good news, but it's hard to tell at this point.

In terms of home prices, Atlanta's been getting pounded: prices at all levels have been dropping. http://blog.redfin.com/files/2012/02...rs_2011-12.png

But there have been some positive signs in terms of sales: News Headlines

Quote:
If things are looking up in Miami, Atlanta remains a work in progress, though there are some recent signs of life. According to S&P/Case-Shiller, Atlanta’s home prices ended 2011 12.8 percent lower than 2010; even worse, median home prices are down 30 percent over three years, versus the national median loss of 10.2 percent.

New construction limps along as well. As of the end of December 2011, new building permits totaled 6,291 units, down 2 percent year over year. At 9.4 percent unemployment remains high.

But even in moribund Atlanta, things have perked up in a little, says Mitch Kaminer, president of the Atlanta Board of Realtors.

Single-family home sales hit 2,680 in February 2012, up 15 percent year over year. Sales were also up 6.9 percent sequentially versus January. At the same time, however, median prices fell to $110,000 from $121,000 as foreclosures continued to depress property values.

“The faster foreclosures move through the market, the faster they will hasten our return to a healthier market,” says Kaminer.
Kaminer says the luxury market has stabilized compared to a year ago, as those buying such homes tend to have more secure jobs.

As for entry level, it’s a good time to get in, he says; whereas a home could have sold for $100,000 five years ago, it might now list for $80,000. When you combine that with the 3-percent down payment required by the FHA, it creates attractive pricing.

At both ends of the market, Kaminer says the ball is really in the buyer’s court, as sellers will not get what they want, but they will get what a house is worth.
There is little new construction, but that is still an uptick from the past several years.
“I now do three times the amount of work for the same money,” says Kaminer. “It used to be that every listing lead to a slam-dunk close, now maybe it’s one out of three. I’ve got to work three times as hard just to stay above water. Although a year ago it was maybe one out of four.”

Atlanta real estate agent and blogger Sally English believes in the most stable part of the market in 2012 will be the middle, where homes are priced from $200,000 to $300,000.

There is too much inventory for luxury homes priced over $600,000 for sellers to see any real appreciation, and homes below $200,000 remain in competition with foreclosures. Bank-owned sales accounted for 48 percent of the total sales in metro-Atlanta in February 2012, a huge number.
Interesting that the 200k-300k may be the sweet spot for Atlanta. And it definitely sounds like it's foreclosures more than anything else dragging down prices still, despite the fact that sales are rising.
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Old 04-05-2012, 11:28 PM
 
906 posts, read 1,745,873 times
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Wall Street Journal reports that renting, relative to owning, is getting crazy expensive:

As Home Rents Push Higher, Owning Regains Its Appeal - WSJ.com

Quote:
Although increased buying activity from investors and second-home purchasers are also factors behind the recent pickup in home sales, real-estate agents say they are fielding more calls from anxious tenants complaining about rising rents. "The rental market has been incredibly hot," said Ronald Peltier, chief executive of HomeServices of America Inc., which owns real-estate brokerages in 21 states. He says rising rents, coupled with slumping home prices and interest rates near record lows, are boosting demand for homes at entry-level prices.
Atlanta has a huge difference in its rent/own ratio: It costs over 90% more to rent a property than to pay for a mortgage on an equivalent property. Check out the chart here:

http://si.wsj.net/public/resources/i...0403183004.jpg

Generally this is a good sign for housing going forward, as it means there's increased economic pressure on folks to shift from renting to purchasing a home.
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Old 04-08-2012, 03:59 AM
 
906 posts, read 1,745,873 times
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As I suspected, it does seem like some of the ATL exurbs/suburbs are responsible for dragging home values down in recent months . . . .

Home prices stabilizing. So what's wrong with Atlanta? - CSMonitor.com

Quote:
"Atlanta's a real quirky market," says Hank Miller, real estate broker and certified appraiser based in Roswell, Ga. With no natural boundaries, developers expanded wildly during the housing boom, so that outer suburbs in the south and near Hartsfield-Jackson Atlanta International Airport are awash in homes that are depressing prices. But in many suburbs north of the city, "it's actually a very tight and stable market, stable to the point that people are building new homes. I've got three new homes under contract for over $500,000 in the last two weeks."
And it sounds like we've still got a while before a turnaround:

Quote:
Atlanta, for all its recent decline, has not seen prices fall half or more from their peaks, as Las Vegas, Phoenix, and Miami have. Its average home price would have to fall another 20 percent to reach their level of distress. So it's natural that these local real estate markets go through a period of volatile adjustment as buyers and sellers find the floor for prices.
But there are no guarantees that housing prices will go up. Mr. Miller, for one, isn't expecting any quick turnaround. He points to the huge inventory of foreclosed and other homes still waiting to come onto the market. "You still have a couple years to shake this thing out," he says.
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Old 04-08-2012, 07:16 AM
 
Location: ๏̯͡๏﴿ Gwinnett-That's a Civil Matter-County
2,118 posts, read 6,373,478 times
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Further compounding the problem is they're still breaking ground on new subs even as they're still trying to sell brand new homes that were built 4 years ago.

Why isn't our elected representation putting the brakes on this new development?

What happens when people can't sell and don't want to become slumlords in some declining sub that's full of renters? After a long time on the market, they just give up and let the bank foreclose on it.

They need to either force the banks to slash principles so people can sell or they need to have a moratorium on all new construction until inventory levels are at a certain point. OR both.
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Old 04-08-2012, 08:45 AM
 
Location: San Antonio-Westover Hills
6,884 posts, read 20,401,094 times
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Quote:
Originally Posted by cittic10 View Post
Further compounding the problem is they're still breaking ground on new subs even as they're still trying to sell brand new homes that were built 4 years ago.

Why isn't our elected representation putting the brakes on this new development?

What happens when people can't sell and don't want to become slumlords in some declining sub that's full of renters? After a long time on the market, they just give up and let the bank foreclose on it.

They need to either force the banks to slash principles so people can sell or they need to have a moratorium on all new construction until inventory levels are at a certain point. OR both.

We are seeing the same issue in San Antonio, not to the same degree though.

Homebuilders continue to see credits from the 2009 American Reinvestment and Recovery Act in return for building new homes.
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Old 04-08-2012, 11:20 PM
 
9,008 posts, read 14,050,476 times
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Quote:
As I suspected, it does seem like some of the ATL exurbs/suburbs are responsible for dragging home values down in recent months . . . .
Sounds like from that quote, the problem areas are the burbs south of town.

Guess who lives there? People who were displaced from the core of the city when real estate in midtown and other intown neighborhoods started booming.

So yeah, maybe you can blame the sourthern suburbs....but they wouldn't have tried to develop them so rapidly if there weren't so many people fleeing the expensive city to come to them. So it's really kind of the city's fault as well.

This city does not exist in a bubble. All areas affect each other.

And if the suburbs/exurbs or whatever you want to call them are doing so badly, then you don't need moratoriums. If nobody wants to live ther and the builders can't make any money, guess what? They'll stop building there on their own!

Wealth of Nations is an informative book. You should take a look at it.
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Old 04-09-2012, 06:50 AM
 
Location: Kirkwood
23,726 posts, read 24,854,509 times
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I've seen 10 homes sold to young families in a 4 block radius of my corner of Kirkwood since the beginning of the year. Some areas seem to be making a come back.
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Old 04-09-2012, 11:18 AM
 
Location: Pisgah Forest
145 posts, read 361,429 times
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My listings in the Whittier Mill Village neighborhood: One home is under contract for a great price, another one has an offer on it, the other one is getting great traffic. I have another listing nearby (in West Highlands) that is under contract, too. I have Buyers looking in West Cobb and Sandy Springs and homes we are seeing there go under contract all the time! I hope this is a trend As for renting, the rentals I have had lately have been flying off the shelves. I personally have not been this busy (with things actually selling...) in 3 years. Woo hoo!!!!!!
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Old 04-09-2012, 11:30 AM
 
55 posts, read 118,231 times
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Have you seen any trends in Alpharetta? I drove around last week and saw quite a few SD(Herring Township,Hanover pointe, Deerfield landing, etc... Their websites, majority of their homes listed are under contract.
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Old 04-09-2012, 01:12 PM
 
Location: Atlanta,Ga
826 posts, read 3,120,196 times
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I think the issue is people are having a tough time getting loans. You can rent out houses in my neighborhood for a ton but its more difficult to sell. Additionally, I have watched buyers pick non-distressed sales over distressed many times. People don't want to deal with the banks who can leave you in limbo for months.
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