Atlanta Georgia Metro Home Prices Decline. The Price of the Average Atlanta Home Sold Falls 9% YTD in October 2008.
To most "No news is Good News!" Perhaps they are right! This is not good news that Atlanta is seeing a continued drop in Atlanta homes sales, and as a result home prices are dropping also. Our most recent statistics were just released by our Atlanta MLS (FMLS) this past Friday Nov. 21, 2008 and it is interesting to see the trends that are taking place. The price of the average sold single family detached Atlanta home in October 2008 has fallen 9% since October 2007. The average sale price for an Atlanta home - single family detached sold in October was $214,823. If you pay attention to the years 2005-2007 there is very little fluctuation in price. This year it is very different. It is a very price sensitive market that is driven by a few buyers that are most selective in what they are buying. 14% drop in sales price may not sound like a lot but in comparison to October 2005 that is a loss in equity of $36,645 dollars. When you combine this to the fact that over 52% of Georgia home buyers used 100% loans in the last few years is not good. Many Atlanta homeowners have not accepted the fact they are upside down in price.
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Mark my words Jim, I see great things for 2009 and and agree with several of your predictions from your earlier post.
Jim your value drops are steeper than our area which are down about 2%. Not as bad as Vegas and Florida though, but still a significant drop.
For folks who have to sell, job transfer, etc. there will be more short sales and foreclosures.
Oh, I forgot the resets from 2005. More foreclosures. If you can't refinance, you eat the house or it forecloses.
Same thing here, but not as bad.
Jim,
I think your area is somewhat like our area...not the worst affected, but not the least either...we are kinda average! I am pretty sure values are at or near bottom!!! Thanks, Fran
Jim I don't think the decline was as severe as one would be led to believe.
Jim, Compared to Prince William County that is fantastic, Karen
Paul Henderson (RE/MAX Professionals) I think 2009 will be very interesting to say the least. I do believe it will be the begining of the upswing.
Gary Woltal - REALTOR® Dallas Ft. Worth (Keller Williams Realty) Some areas of Atlanta, most especially the Southside are in a very rough place economically. Entire neighborhoods and streets are in foreclosure. While real estate is local to some extent it is scary how some areas are in really bad shape and others are bad, but not critical. In my own area in North Fulton - sales are off over 61% from 2 years ago. My guess? Higher prices are not selling.
Lenn Harley Homefinders.com MD & VA Real Estate I agree. I also think that many of the persons that are on the market with overpriced properties are just in denial. Foreclosure is knocking on their front door. They are upside down but will not acknowledge it to themselves.
Fran 'The Title Man' Gaspari Title Insurance-PA & NJ (Patriot Land Transfer, Inc.) I personally beleive Atlanta has further to go down in price...
John Walters (Specialized Real Estate) There are about 84000 active listings - our expired listings are twice that of sales, and listings withdrawns equal sales. Foreclosures per month have been running at near 8-10K a month. In the late 1990's we had 8500 agents persuing 3000 sales a month, we now have 40,000. I think it is going to get worse before it gets better.
Karen Kruschka - Fairfax Prince William Stafford County VA Real Estate Service (RE/MAX Allegiance) I know. I also create statistics for there for Ellen! LOL!
Jim,
Were in the same boat here...a;though I see some activity out there now but prices continue to fall...nice graph by the way....nicer than mine...I want one.
Jim - The metro Louisville area shows about 4.5% YTD decline. Although, we are only down a little over 1.2% from 2005. Values here actually appreciated slightly in 06 and 07. The first quarter will be very telling in terms of whether the slide has at least slowed if not turned.
Neal Bloom-Realtor ® Assoc.-CRS-Weston FL (RE/MAX Premier Associates) Activity in my area is the lowest I've ever seen it. Thanks!
Erik Hitzelberger, --Louisville-Bullitt County Real Estate (RE/MAX Alliance) I agree, the first quarter will tell all!
Jim
Sorry to hear about the vaules but its still not as bad as my area of Florida Lee county...great time now that agents drop out to make move to the top...also its better than selling in Buffalo, NY, I graduated from Fredonia State....small world
we are experiencing similar drop in prices and sharp drop prices, record amounts, sales are up , but its misleading as foreclosure are counted
Tim Ludemann (Chiodo Properties LOL! The last I heard Buffalo is one of the few stable markets in the USA. I don't think the price drop is too much. A big part of this is that the 100% loans have dissapeared.
James Wexler, Scottsdale AZ Luxury Homes (Coldwell Banker) (wexzilla.com) Foreclosures do not create the same type of wealth that a resale does.
i love the way you write your reports and the charts. I am sorry to read about the decline. I visited Atlanta for the Olympics with my husband and son. It is so beautiful and there are such lovely homes. We visited a person who had a 5 bedroom 5 baths house that was just gorgeous.
GITA BANTWAL, REALTOR BUCKS COUNTY, PA HOMES (ReMax Centre Realtors) Thank you. It is a stunning area, but too many purchased homes with no money down. Now there are loads of homes that are upside down...and that is why we have a high foreclosure rate pulling prices down.
Jim - what was your source on this figure? "When you combine this to the fact that over 52% of Georgia home buyers used 100% loans in the last few years is not good."
Ken Cook - Market, market, network! 678-946-0101 That we pretty much public knowledge a while ago. That is why we have all the foreclosures. We were #1 in the USA for no money down for almost 3 years! No it is not good.
Jim,
I believe that 2009 will see a stabilization for most markets and by 2010 the industry should be "normal".
For what ever reason (and we like to think it is our daily contacts and networking) we are busier than we have been all year.....
Dan Brudnok - Realtor, e-PRO, ABR, CSP - Chester County RE Professional (Keller Williams - Exton - PA License Number #RS225179L ) You are blessed because you are working to turn it around. I agree!