Atlanta Condos Appreciating Faster than SFH for First Time Ever

[hautemomma]

My guesstimate would be that many are being acquired by investors.

[3rdbass]

Well I hope this is true! I just listed a 1 bedroom condo on the beltline in Poncey Highlands. It has been great to see the condos escalate so much after beltline was built. It was just rock bottom only 3-4 years ago. Now I can get out before the flood of apartments are converted to condos in the next few years.

[testa50]

lol @ the article's claim, which is impossible to verify but most likely totally wrong. Condos were hugely overvalued circa 2007 (remember the $500,000 1/1s in that Atlantic Station condo building?). It's certain that sky-high price appreciation, much greater than that of metro-wide SFHs, preceded that period, obviously followed by a dramatic crash. Case Shiller doesn't keep a condo index for Atlanta like it does some other metro areas because the market is small. So there's no telling.

Maybe there's some condo index or something they're referencing behind the paywall, but the idea of a SFH index beating a condo index YOY going back into history through all time is pretty absurd (houses would be worth several times what condos are worth if this were the case). Both would be quite volatile indices over the years, if the condo index even exists.

[GeorgiaPeanuts]

Originally Posted by testa50

lol @ the article's claim, which is impossible to verify but most likely totally wrong. Condos were hugely overvalued circa 2007 (remember the $500,000 1/1s in that Atlantic Station condo building?). It's certain that sky-high price appreciation, much greater than that of metro-wide SFHs, preceded that period, obviously followed by a dramatic crash. Case Shiller doesn't keep a condo index for Atlanta like it does some other metro areas because the market is small. So there's no telling.

Maybe there's some condo index or something they're referencing behind the paywall, but the idea of a SFH index beating a condo index YOY going back into history through all time is pretty absurd (houses would be worth several times what condos are worth if this were the case). Both would be quite volatile indices over the years, if the condo index even exists.

Article says condos appreciated 9% while SFH only appreciated 5.4%. It also claims this is the first time in history that Condos have appreciated faster. Just because pockets of condos appreciate faster doesn't mean overall for the city that condos would as this is looking at city wide for Atlanta. I'm sure some submarkets have differing dynamics.

[3rdbass]

All I know I was at $60K at the beginning of 2013 and now have an offer well over $100K more than that value even including closing costs. Of course I'm right on the beltline between Poncy Market and Inman Park. I'm happy about that. It sure seems pricing have been rising crazy in the last few years. So over 100K increase in just over 3 years for a condo isn't bad.