Atlanta condo market: Bad to worse
March 24, 2008 at 12:56 pm by Andisheh Nouraee in NewsAtlanta’s intown real estate market was never as bubblicious as California, Florida, New York or Boston. Nevertheless, Atlanta’s real estate market, particularly the condo market, has taken a big hit during the past year.
From the Wall Street Journal (emphasis mine):
The median condo sales price in the Cape Coral-Fort Myers area of Florida fell 26% to $202,300 in the fourth quarter of 2007 from $273,400 a year earlier.
Prices dropped nearly 20% in Tucson, Ariz., and 12% in the Atlanta area during that time, according to National Association of Realtors data.
2008 is likely to be just as lousy, if not more so, as the current supply glut gets, er, gluttier:
More than 4,000 new units will be completed in both Atlanta and Phoenix by the end of the year . . .
That’s potentially great news if you plan to buy a condo and stay there for 10 years. But lousy news if you’re trying to sell a condo, or a house anywhere near similarly priced condos.
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March 24th, 2008 at 1:48 pm
Cycles…all in cycles. Condo living will continue to become the choice of creative and active lifestyles.
March 24th, 2008 at 2:34 pm
Everyone is aware that real estate markets go through cycles.
Nevertheless, a 12% single-year price drop is enormous.
And 4000 new units in a city of 500K is also substantial.
The factors contributing to the re-population of inner cities haven’t gone away — but Atlanta has the highest new condo inventory its ever had.
Saying “it cycles” doesn’t really give condo buyers and sellers any idea how to plan their purchases.
You’re a broker, Mr. Longo.
Under what circumstances would you advise your friends or family to buy a $300K condo in an Atlanta neighborhood adjacent to several hundred similarly priced units under construction?
March 24th, 2008 at 10:58 pm
Andiseh — in the circumstance that you own CondoDomain.com ;) — http://www.linkedin.com/in/longo
March 25th, 2008 at 7:48 am
Great catch you guys. I was wondering about that first post.
For me, its not an option. I have 2 kids 8 and 12. Living in Condo isn’t going to happen
March 25th, 2008 at 10:03 am
My wife and I had to sell our one-bedroom ViHi condo last year to expand our space for our child. We got completely screwed and took a huge loss because of the condo market. Prices of older units like the one we had are driven down more and more because of the glut of new condos in the area.
We’re middle income and losses like that hurt like a futhermucker. We’re currently renting a 2 BR in Midtown becasue we can’t afford to buy a house or get into another situation with a condo that could be devalued so easily. ATL’s market makes it very hard for people with our income to live near where we work. But living here is otherwise really great so the struggle goes on.