Atlanta homes moving...at terrible prices (Buckhead: sales, real estate, 2014)

[ATLTJL]

Every time we spread a little bit of reality here about home prices, some realtor has to chime in and say something like, "I don't know what you're talking about, I have listings that are moving in under a week!"

Well, it turns out that the realtors may not be completely full of lies.....this time.

Interesting angle on the Atlanta housing market in this article. Apparently, homes are starting to move. They're just moving at horrible prices and the rule that moving inventory generally brings prices up is simply not happening yet.

Home sales up as prices plummet *| ajc.com

[Onthemove2014]

Realtors on this site are really annoying with the way they push and spin stuff.

I'll say this though; everyone is waiting for a housing comeback becuase people don't understand that they paid to much for their house and everything is just falling to the real prices they should be based on inventory and desirability.

[ATLTJL]

This is one issue where you and I can agree.

Everyone will celebrate when real estate prices stop collapsing. The punchline is we probably have a 20 to 30 year horizon before they return to 2007 levels, or whenever the peak was. Inflation is probably going to be a bigger factor in rising pries than actual rising values.

[lorilove]

This is definitely true in my neighborhood. Homes are definitely selling but at prices that reflect the new SIGNIFICANTLY lower prices. So far the new owners have all been top notch so lets hope that trend at least continues.

[Mattie]

I'm in zip code 30004, which has outperformed most of the Northside. But, I have two neighbors who would love to sell, who are instead renting. Once they opted for a lease instead of a contract they had no dearth of interest.

[cittic10]

I don't see that happening here in my N. Gwinnett subd.
There's houses that have been on the market going on 3 years.

However, I do see the new construction houses selling.

It's kind of hard to compete with that. I wish our elected representatives would help us out but I guess that's kinda hard to do from a jail cell.

[samiwas1]

Originally Posted by Onthemove2014

Realtors on this site are really annoying with the way they push and spin stuff.

I'll say this though; everyone is waiting for a housing comeback becuase people don't understand that they paid to much for their house and everything is just falling to the real prices they should be based on inventory and desirability.

Indeed. Our neighborhood was selling for around $200k when we bought in 2005, got up to $250k in 2007-2008, but has now crashed down to $120k-$130k. I'm just trying to figure out when to take the $50,000 hit and just move into something better suited for us. It's very hard to stomach losing $50k, though, especially with a new child.

We only hope and pray that the two new developments in the works on either side of us (replacing a blighted shopping center and a dilapidated mostly-boarded-up apartment complex) will at least give us a value boost. Now, if we could just get those lawyers from Buckhead to stop getting in the way.

[cittic10]

Originally Posted by samiwas1

Indeed. Our neighborhood was selling for around $200k when we bought in 2005, got up to $250k in 2007-2008, but has now crashed down to $120k-$130k.

+++
Indeed?
Indeed people paid too much for their houses but now the houses are selling for less than what they cost to build?

Most people did not pay too much for their houses in Metro Atlanta.
If you want to see people that paid too much for their houses, you need to go down to Florida or Nevada or California.
We clearly have problems here but it wasn't because of inflated housing prices to begin with.

Originally Posted by samiwas1

We only hope and pray that the two new developments in the works on either side of us (replacing a blighted shopping center and a dilapidated mostly-boarded-up apartment complex) will at least give us a value boost.

It's not.
The reason your home value is in the tank is due to over supply. More houses on the market is just going to make it worse.
If I were you, I'd be fighting to keep that dilapidated shopping center as long as possible.

[Onthemove2014]

Originally Posted by cittic10

+++
Indeed?
Indeed people paid too much for their houses but now the houses are selling for less than what they cost to build?

Most people did not pay too much for their houses in Metro Atlanta.
If you want to see people that paid too much for their houses, you need to go down to Florida or Nevada or California.
We clearly have problems here but it wasn't because of inflated housing prices to begin with.

How do you conclude that people in Atlanta didn't pay too much? What's makes it different?

[Tarzanman]

Honestly, the issue of pricing is just a symptom of the real problem. I am a 30-something that is not even *considering* buying a house yet because I can't afford one.

I was underemployed for many years (still am, but not as badly as before), and as a result I am still paying off college debt.

My monthly debt payment is manageable, but it cuts enough into my take-home pay to make paying a mortgage untenable.

Yes, I do see some enticing deals out there, but I am years away from being able to afford because saving up for the down payment is difficult with my current wage and I can't afford a full on mortgage *and* my other obligations even though I do not have a car payment.

Paying rent is like throwing away equity, but its a choice between that or being 'house poor'. At least if I lose the ability to earn then I won't have six figures of debt to my name.

When wages and jobs improve, then the pool of buyers will return, in my opinion.