Is Atlanta a Declining Market? (Buckhead: fit in, sales, lease)

[Smokipenelope]

Hi Everyone -

I was just told by Bank of America that Atlanta is now considered a declining market (three months ago when I initially applied for a loan it was not). I know home sales are not great but I don't think of us as "declining" or having the issues that some other states have. Does anyone have any thoughts on this? It's making me rethink the counter-offer I was considering putting on a house! Oh - and this is inside the perimeter, which I thought was fairly well protected.

Thanks -

[blackrabbit]

I was told the opposite today, specifically ITP. We are actively looking in Buckhead/Brookhaven for a ranch between 550k and 750k and have not seen anything decline in 6 months. If anything the market is stronger. The bank may be saying this because of their general risk aversion right now and difficulty with funds.

Where exactly are you looking?

[Smokipenelope]

Brookhaven/Buckhead myself, but under 400K so we probably won't be neighbors.

It didn't happen to be B of A that told you that did they? I was so surprised I insisted the representative check again, she put me on hold and apologized for it but said it indeed is a declining market. Zip code she pulled was 30319.

[Smokipenelope]

Just re-read your post about the bank and aversion to risk, I responded too soon! That is probably it.

[SEAandATL]

No, I don't think it's declining. I just recently checked the MLS listings for Midtown (30309), Buckhead, (30305), Little Five Points (30307), Virginia-Highland (30306), and 2 bedrooms start at about $175k. The property values are actually higher than the property I own in San Diego. Now that's a declining market. My property there is worth about half of what I bought it for in 2004. I should have bought in Atlanta instead, but realtor kept telling me that I'll make more of a profit in San Diego since at the time the property values were appreciating 15-20% annually. Who would have thought that the trend would have reversed.

[rswlguy]

New homes that have been built in the last 6mo (unoccupied) just got reduced 100k to starting high 600s (30066 & 30075).

Yes the market has declined... trend of higher priced markets take the hit first. And it's gonna decline a bit more before it's finished. I don't think we're yet bottomed out on this one.

[Merin]

I have heard that prices are down but sales are up. Houses are still selling in my neighborhood.

[NEastBound]

For BOA it is. They are being investigated for fraud due to the acquisition of Countrywide...I'd find another bank

[scgraham]

Originally Posted by blackrabbit

I was told the opposite today, specifically ITP. We are actively looking in Buckhead/Brookhaven for a ranch between 550k and 750k and have not seen anything decline in 6 months. If anything the market is stronger. The bank may be saying this because of their general risk aversion right now and difficulty with funds.

Where exactly are you looking?

The banks are looking out for themselves now. They probably want more investment by the purchaser (down payment) to hedge themselves.

[Smokipenelope]

I'd never been a fan of B of A so I am honestly not surprised they couldn't deliver (and I'd been waiting to see if the interest rate was higher to cover the closing costs they'd be paying). If anything this solidified my belief that my broker is giving me the best deal I can get and I am really glad I wasn't relying on their program as my only option!

I'm still trying to figure out if I am really going to buy this house, I have to buy out of a lease so that adds to the cost, just have to figure out if THIS house is really worth it or should I wait til the spring. Fun decisions!