Time for a condo (?) (Atlanta, Buckhead: fit in, sales, foreclosures)

[atlantagreg30127]

Wow - depending on the area, a 3 to 4 year surplus on condos in Buckhead and Midtown. Prices dropped as much as nearly 40% in some of these places. Looks like the once overpriced things are going to start looking more attractive before long.

Having 3 large dogs, condo living 'aint for me right now, but if I were younger and didn't have the mutts in tow, I'd consider it at some of the prices shown lately.

Story: 3 year supply of condos available in Buckhead | ajc.com (http://www.ajc.com/business/content/business/stories/2009/05/14/condo_buckhead_surplus.html?cxntlid=homepage_tab_n ewstab - broken link)

Truth be told though, considering the large number of condo projects that have been built in the last few years here, I think the 3-4 year surplus estimate is a bit easy. I'd guess it is longer than that before they start selling out or having people wait for the things, but I could be wrong.

[YAZ]

We have a rental here in downtown Phoenix; thank goodness there are folks that can't buy right now.

That's the BIG reason we bought our house...we can rent out our other property.

The economy sux, but ya gotta take advantage of some things....sorry for the folks that are going through crap right now.

We might go through crap soon if we lose....we'll have to see what happens.

Best wishes to all in this weird stuff that we're going through.

[Mishap]

It's all about location, building dynamics, and existing owners that determine the price of a building and the actual fall in value. Take Twelve Atlantic Station for example. It was chock full of speculators paying top dollar and as a result it's totally collapsed. People were flipping units year to year and its come back to bite them.

Here are some current listings:
361 17th St NW UNIT 2608, Atlanta, GA 30363 - Zillow
2608 - $138,900

Last sold in '06 for $268k meaning nearly a 50% fall in value.

2602 - Penthouse Unit:
361 17th St NW UNIT 2602, Atlanta, GA 30363 - Zillow
Original sale $770k in 3/06
Resale at $994k in 9/06 and now listed for $682k. The first buyer netted $37k/mon by holding it for 6 months.

If you look at recent sales in the building there are about a dozen a month and most look to be short/foreclosure sales w/ 1bdr's going for 130-150k and 2bdr's starting at 230k. Compared to some other buildings, it's in terrible shape but it makes up most of fall in the area (also damaging the values of the nearby lowrises Art Foundry, ATLofts and Element). The studios hit nearly 300k before they totally collapsed.

I've been shopping aggressively in midtown but those deals are much tougher to find. First off the units weren't quite as blown out in price w/ most 1bdr's hitting 220-230k max. While there are a few foreclosures, most people are holding on and at the same time they don't have enough equity to book a real loss. This means they won't be willing to take the $40k off asking I was pushing for.

[noah]

8% price decrease is much lower then the overall average for Atlanta. I believe they are referring to intown not including Buckhead and Downtown but don't know if Midtown is included or not.


"Nearly 200 condos were sold in the first three months of the year, but resale of condos still declined 33 percent and the average sales price dipped 8 percent, to $195,502, compared to the first quarter of 2008"

[J2rescue]

I'd just like to point out that the 3-4 year supply estimate is based on recent condo demand which has been severely depressed. If the economy rebounds and the condo sales return to normal pre-"boom" levels, that supply will be much less 3 years.

[noah]

Good point, same goes to houses in metro Atlanta in recent months but condos seem to get more press. I bet that demand will increase as the condos are in areas that people want to live in and provide a great quality of life with everything close by.

Originally Posted by J2rescue

I'd just like to point out that the 3-4 year supply estimate is based on recent condo demand which has been severely depressed. If the economy rebounds and the condo sales return to normal pre-"boom" levels, that supply will be much less 3 years.

[Mishap]

I'd say it may be a few decades before people go back to the collective fervor that caused this current nightmare. I'm buying a condo but I have no illusions of wealth from selling the place. Instead, I look at it as a long term way to cut some of my tax liabilities and build a bit of equity until I get settled in my career. Even if the place remains flat in value until I finish my education, it's still cheaper than renting in the area after the tax breaks.

I've been looking at sales histories at a lot of these condos especially in Atlantic Station b/c there's comedy in it all. One of the foreclosures on a 1bdr that went from 250k->350k->150k in a 3 yr period involved a realtor that subsequently lost her license when you cross reference her name.

I can't find the back issue of the AJC anymore but there's the story of the 26 yr old realtor (think her name is Moderator removed - please leave the person's name out, thanks.) dropping 800k on the Penthouse unit in Twelve. She bragged about living on top of the world when her parents owned the place and she merely rented. The quote is still listed on the Atlantic Station website but the AJC link is dead. As realtors themselves...they didn't follow the drug dealer mantra "don't use what you're selling" and bought in at peak. It really personifies the insanity of the condo boom in Atlanta when it seemed like a great idea to $450/sq ft for a new development b/c they'd be able to flip it for profit in 2 yrs.

Now inactive listing on the place:
Atlanta, GA 30363 - presented by Neil and Cheryl Moulton
If you look through the pictures, you can see the crane for the Atlantic coming up meaning their view has been wholly destroyed by the latest and greatest building that could topple Novare.

They're asking for 70k more than they paid but including 2yrs HOA which is roughly 14k so after negotiating...they're likely taking a loss but Zillow values their place at 469k and one of their neighbors is a foreclosure selling at 670k so I don't think they're going to emerge from this move w/o a foreclosure.

[terrence81]

Was in Atlanta last weekend. Surprised by all the construction since I was there a year ago. Saw this hi-rise on 12th street by Piedmont park that I remember was just hole in ground. Now it's built with mighty expensive condos what I think like $350K for a 2 bedroom. The place looked awfully empty. Nobody outside only about three lights on in the whole building. Looked kinda sad. I just don't know $350K for a two bedroom might fly here in the DC area but in Atlanta I don't know seems overpriced to me even if it is in a luxury hi-rise in Midtown. But I could be wrong maybe it's a bargain?

[atlantagreg30127]

Originally Posted by terrence81

I just don't know $350K for a two bedroom might fly here in the DC area but in Atlanta I don't know seems overpriced to me even if it is in a luxury hi-rise in Midtown. But I could be wrong maybe it's a bargain?

Well, there are condos in Buckhead that well exceed a million dollars that are two bedrooms, but those are the exception and not the typical rule. $350k is what I'd call the "pre-bust average" that we were starting to see here for a 2BR in a high rise, but then after the bust, things started to drop. I guess just based on listings, that $250-$275k is more the norm for a 2BR unit now. Who knows what the monthly fees are though.

For $350k I want someone to run my bath water for me and feed me grapes.

[J2rescue]

I agree $350K was about the norm for a 2 BR in the last couple of years. The condos at the St. Regis in Buckhead were from $2 million and a recent story in the AJC said there are only a few left. There have been a few others(The Mansion, Sovereign) that start in the million $ range.