Atlanta market not selling $400K+ homes as fast as it used to (Roswell: wood floors, 2015)

[jhtrico1850]

Difference between seller?s market and buyer?s market: razor?s edge | Appen Media Group

For houses priced under $400,000, there are 2.6 months of average inventory on the market. For houses over $400,000, there are 5.5 months. Most experts consider a healthy market to have 6 months of supply.

Woodstock and East Roswell had the lowest sub-$400,000 inventory levels at 1.9 months. While Alpharetta had the highest above $400,000 inventory level at 8 months.

The second thing is that home builders may be starting to over build the luxury market. For the last several years, because of the increased number of jobs and influx of people into Atlanta, they have had no trouble building higher-end homes and selling them prior to putting a shovel in the ground.

Not many builders have been building the sub-$400,000 market. A homebuilder friend of mine told me that he just finished a $450,000+ townhome community in what I consider a very desirable location. And he’s having trouble selling them.

[Tarzanman]

I'd bet that a big part of the problem is that your builder friend built a $450k *townhome*.

Even in Atlanta, I would demand half a million dollars to buy me a single family home and a yard. If your builder friend had been willing to take a hit on his margin... maybe 2 single family homes at $550 instead of a multifamily unit for 4 families at $450 each then he would have probably sold them already.

Also, Atlanta has one of the worst income disparities in the country. Households who could conceivably swing the financing and mortgage on a $450k townhome is basically the top 20th percentile of the population here.

[tikigod311]

I know this doesn't account for all 400k+ properties, but maybe they are overbuilding luxury living? Not everyone needs the nicest amenities, some folks just want a comfortable, safe place to live.

[cqholt]

West End seems to have no issue selling $400K properties
https://atlanta.curbed.com/2017/4/20...galow-for-sale

[Cameron H]

Originally Posted by cqholt

West End seems to have no issue selling $400K properties
https://atlanta.curbed.com/2017/4/20...galow-for-sale

That's, like, the exact opposite of what the article says.

"Records indicate no West End single-family home has sold recently for more than $400,000. In fact, this bona fide West End mansion that traded last summer was among the few homes in the vicinity to crack the $300,000 mark. "

Beautiful house, though.

[vtecluder617]

[quote=jhtrico1850;47900041
Woodstock and East Roswell had the lowest sub-$400,000 inventory levels at 1.9 months. [/QUOTE]

That doesn't surprise me, especially around my area of Woodstock (Towne lake). Anything under $400K gets snatched up pretty quickly. Could also be because $300K-$400K seems to be the price range for a majority of people.

[Stormhammer]

Originally Posted by tikigod311

I know this doesn't account for all 400k+ properties, but maybe they are overbuilding luxury living? Not everyone needs the nicest amenities, some folks just want a comfortable, safe place to live.

That's the thing, having granite counter tops and wood floors seems like the standard now. Not only that, but just the demand in certain areas is ridiculous. An old colleague of mine had his home built for $189k in Cumming back in late 2014/early 2015. By the time the house was finished being built, its value had already increased $40k.

I know there are some parts of the seats in Alpharetta that are trying to incentivize developers to build more affordable homes, and not townhomes/condos starting at $500k and targeting the empty nesters.

[jhtrico1850]

Granite countertops and wood floors doesn't make a house start at $400K though. Below is Taylor Morrison selling almost the same floor plan and elevations, in Johns Creek ($310k) and Lawrenceville ($184K).

Emory Floor Plan at Abbotts Square in Johns Creek, GA - Taylor Morrison
Emory Floor Plan at Rockhouse in Lawrenceville, GA - Taylor Morrison

The difference in pricing I figure is what each market will bear, and land is probably a big cost too.

[ekman243]

The article is referring to only one part of Atlanta, North Fulton which does not mean this is the case in all of Metro Atlanta

[ATLTJL]

West End seems to have no issue listing $400K properties

Went ahead and fixed that for ya, buddy.