Atlanta right now is suffering from a condo and town home overbuilt situation. New homes builders in the last few years scrambled to fill a market void of condos and more especially town homes. In layman's terms they over did it on steroids. I know for a fact that quoting inventory levels and absorption rates is useless with so many properties on the sidelines in bankruptcy court and entire blocks of units waiting to be auction off in bulk sit just below our radar. Attached housing has a major shadow inventory in this town.
The problem for the home seller is that there is basically no demand for their units. That is due in large part with rising unemployment and lack of consumer confidence. How that translates into our business is less sales, and declining prices. I created a trends chart to show you the pricing of attached condos and town homes to show you what is really occurring in our market. The overall trend is still not good, and I do not think we have bottomed. We need jobs. There is no such thing as a "Jobless recovery!" Persons need income to pay bills, and cannot contemplate purchases when they are counting the days until their unemployment runs out! 19% of upper end job seekers have left the Atlanta area recently seeking employment! Attached home prices have plunged 26.62% from January 2007 when compared to January 1020 and the current average sales price of $129,750.
*These prices are reflective of the greater Atlanta METRO MLS coverage area, and do not represent sale prices in the city of Atlanta alone.
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Jim...impressive graph about condo prices...i wonder what year your 2010 compares to in terms of value...the dip is significant...good for the qualified buyer today...Cherise
Jim, no telling what will happen to pricing when all the dust settles from the BK's and foreclosure. It effects us all. To me the biggest problem is unemployment, with no job security and a jobless recovery; I just don't see the employment picture getting any better under current leadership.
We are seeing huge price reductions in condos with banks starting to step in!
Let's have a great Thursday,
Paul
Cherise Selley - Colorado Springs Realtor (Selley Group Real Estate, LLC) The price trends, will continue to be down this year. Too few sales, too few buyers. Everyone is spooked on condos.
Frank Rubi | New Orleans LA | Kenner | Real Estate (Frank Rubi Real Estate | Homes for Sale | Lic. in Louisiana ) Agreed. What leadership?
Paul Henderson, Realtor ® Lacey, DuPont or Hartstene Pointe WA. (RE/MAX Professionals & Four Seasons Inc.) Same here Paul.
Jim, Graet stats and cool bar graph. Glad I didn't buy a condo there in 2007. Yikes!
Jim it amazes me at the deals you can get on newer condos with city views in Buckhead right now. 3 years ago I showed a condo in a Buckhead high rise that was priced at 750k, now that same unit is in the low 400s!!
Matt Grohe Remax Des Moines CRS, GRI, ABR (Remax Real Estate Concepts) Condos are in deep trouble. There is no nice way to say it.
Jennifer K Giraldi, Atlanta REALTOR® Atlanta Real Estate Expert (Solid Source Realty Atlanta) I am even seeing it in Roswell and Alpharetta. Town homes that sold in the low 300's are now selling (when and if they sell) in the low to mid $200's! Not good.
Jim:
It not as bad as Florida, Arizona, So. Cal. and Nevada got luckly. Jobs are the issue as you describe. I wonder whats going to happen there.
Richard
Jim-
Townhomes and condos have always been an alternative to more expensive homes.
When the homes are selling for reduced prices, who needs condos?