Why Is Midtown Atlanta Inventory So Low?

Why Is Midtown Atlanta housing inventory low April 7, 2015This is a question/challenge I face daily when working with Buyers that are looking to purchase a Midtown Atlanta condo. After viewing properties in an afternoon, the question often comes up, “Is that all we are going to see?” My reply is often, “That is all there IS to see!”

Why Is Midtown Atlanta Inventory So Low?

I’ve attached a link below to an article that recently appeared on the website Inman News which is real estate news for real estate agents. Always good stuff and very informative. However, as I am sure you have heard, real estate is local, local, local. So while this article gives you that 30,000 foot view of the market and conditions nationwide, I wanted to touch two points that relate to Midtown Atlanta…

Value Disruption/Reset in 08/09

As the article states, between 2007 and 2010, we saw a major change in values in Midtown Atlanta. Condos that originally sold for $350,000 were selling in foreclosure for $190,000!  Prices have returned to the higher values, so those that purchased at the high price, may now finally be able to sell their condo and not be “under water” in terms of the value. Those that snapped up at that $190,000 certainly are ready to move, but….

SQ5 Under Construction April 7, 2015Where Would I Go? (Move Up) and Stunted New Development

A quick glance at the Midtown skyline gives one the impression of “Wow, look at all those new condo buildings going up!” Ahhhh…not so fast. All those cranes you see are producing a bumper (maybe even an excess) crop of rental apartments, NOT condominiums For Sale! For the Midtown Atlanta condo buyer, a primary reason for a move, is to move into the latest and greatest new building. But what do you do, or where do you move, when you don’t have ANY new buildings?

Current Midtown Atlanta condo construction is limited to a couple buildings and townhome developments and those prices start in the $700,000 range. That might be a bit more of a “move up” than many buyers can afford.

So, when we are out looking at Midtown Atlanta condos for you to purchase, it’s not me giving you any kind of “salesperson pressure” to make a decision. It’s the market telling you, make that offer now, or it may be gone while you think about it.

Here is a link to Why Is Housing Inventory So Low?

Thom Abbott

I'm a real estate broker living and selling the Midtown Atlanta lifestyle. From high rise condominiums to historic homes, I enjoy everything Midtown Atlanta has to offer. I'll help you find the right home in Midtown Atlanta or any of the other exciting Intown Atlanta communities that border the Midtown Area!

More Posts

Follow Me:
TwitterFacebookLinkedInPinterestGoogle PlusYouTube

More Atlanta Renters Looking to Homeownership in 2015

Buying A HouseMore renters are looking to become homeowners in 2015, but it won’t be without some challenges.

The Zillow Housing Confidence Index has indicated that Atlanta’s renters are more confident about the housing market, and some 130,000 plan to buy a home this year. That’s all well and good, but here are some challenges:

Lack of Inventory

If those renters are looking at Midtown or Buckhead for condominiums, they best be prepared to pounce when they find one they like, and have their pre-approval with a lender in place. Limited inventory and almost no new construction on the horizon will make prices continue to rise, and the possibility of multiple bids a continued reality. All those cranes you see over the skyline are not building “For Sale” buildings, but an abundance (and maybe a bit to much) of rental apartments. So when that priced-right condo hits the market, don’t expect it to sit around for long. An inventory example in Midtown…Cornerstone Village has 310 homes, and there are currently only TWO homes listed For Sale.

Saving For A Down Payment

You have to have some “skin in the game” when it comes to getting a mortgage. That means you need to have money for a down payment. Depending on your credit and other circumstances, this does not mean you may need 10 or 20 percent down. You might qualify for other programs that will offer less money down. And you can work with parents or other family members for a potential gift towards your down payment.

Qualifying for a Mortgage

Well, yes….gone are the days of “fog a mirror, get a loan.” You need to qualify for that mortgage. If you have good credit, a job and don’t have oodles of credit card debt or a big car loan, you should be able to qualify for a mortgage. How much, is another story. (You can find our list of preferred lenders here.)

Finding an affordable home or condo

That might be the biggest challenge of all. Prices have certainly rebounded from years past. Another example in looking at Cornerstone Village. A 1-bedroom condo that sold for $78,900 in December, 2013 is now on the market at $137,000! One bedroom homes at Spire Midtown were selling in the $140-170,000 range and are now topping over $200,000 for the same homes!

But according to Zillow, Atlanta’s Housing Confidence Index hit 66.5, up some 4 percent from January, 2014. Renter confidence also climbed 4.6 percent for the same period.

Those that continue to “sit on the fence” will find that jump off more expensive!

Thom Abbott

I'm a real estate broker living and selling the Midtown Atlanta lifestyle. From high rise condominiums to historic homes, I enjoy everything Midtown Atlanta has to offer. I'll help you find the right home in Midtown Atlanta or any of the other exciting Intown Atlanta communities that border the Midtown Area!

More Posts

Follow Me:
TwitterFacebookLinkedInPinterestGoogle PlusYouTube

Atlanta Condos For Sale | Park Towers Sandy Springs

ParkTowers1There are not many high-rise condominium options when you get outside of Midtown or Buckhead. Most of your condominium construction ends up being of the mid-rise variety, meaning 5-8 stories. But if you are looking to be in the Perimeter area, and want high-rise living, then Park Towers Sandy Springs is an option!

Atlanta Condos For Sale | Park Towers Sandy Springs

Park Towers Sandy Springs was formerly a high rise apartment building that caught the conversion wave of the late 1990’s and was converted to condominiums in 1999. 1 and 2 bedroom homes are found in the 24-story building.

Amenities include a swimming pool with hot tub, 24 hour Concierge, covered parking, tennis courts and fitness center.

The building is convenient to all that is the Perimeter area. Hammond Drive will take you directly to Perimeter Mall and you have additional access from Ashford Dunwoody and Peachtree Dunwoody Roads.

If you are looking for high-rise living in the Perimeter area of Atlanta, let’s take a look at Park Towers Sandy Springs!

Search Park Towers Sandy Springs Homes For Sale Here!

ParkTowersCollage

Thom Abbott

I'm a real estate broker living and selling the Midtown Atlanta lifestyle. From high rise condominiums to historic homes, I enjoy everything Midtown Atlanta has to offer. I'll help you find the right home in Midtown Atlanta or any of the other exciting Intown Atlanta communities that border the Midtown Area!

More Posts

Follow Me:
TwitterFacebookLinkedInPinterestGoogle PlusYouTube

Atlanta Real Estate to outperform rest of United States

Atlanta Real Estate to outperform rest of the United States

Atlanta Real EstateThe Atlanta real estate market is brisk and most metrics indicate positive growth. The seller’s market continues and Atlanta will likely out-perform the rest of the country in both value growth and unit volume.

The intown market has experienced the greatest appreciation, with many communities seeing more than a 20 percent increase in value since early 2013. Empty-nesters and millennials alike continue to migrate to the intown market to take advantage of the lifestyle benefits that urban density offers … including restaurants, shopping, public transportation, entertainment … and of course the Beltline. The Beltline phenomenon may be the single biggest driver for intown growth outside of the rebound of key intown employment sectors. Professionals are seeking communities that offer a walkable live-work lifestyle and are abandoning expensive commutes. The announcement that NCR will move 3,500 employees into the city only reinforces this trend.

With prices having accelerated to 2007 levels in many intown and Buckhead sub-markets, I think we can expect only moderate value increases in 2015. Inventory has stabilized into the four-month range (six is considered normal) as seller pent-up demand levels off. Clearly, there appears to be a normalizing in the market. Sellers can sell at prices that motivate them and buyers, anxious to lock in — in advance of rising prices — and at low rates, continue to step up.

311 Harp Road Fayetteville GA 30215The suburban market was subject to some of the market’s worst foreclosure rates and value declines in the recession. The evaporation of foreclosure notices has helped property values rebound. Suburban values are edging close to 2004 levels, according to Case-Shiller. Also, the tide of foreign purchasers continues to be a positive factor for suburban — and to a lesser extent — intown sellers. Anecdotal reports suggest that as many as 20 percent of all suburban purchases are driven by international buyers. This is true at all price points. The Atlanta market continues to be a magnet for inbound international migration as well as foreign investment.

Exurban markets continue to lag, but are showing unit and price growth as well. Only the second home market remains for value hunters. Prices in the North Georgia and North Carolina mountains — as well as the Georgia coast — have not yet approached a full rebound, though anecdotal reports from our brokers are that signs of vibrancy are returning. That said, absorption is still slow in those markets.

New home construction is at a seven-year high. Intown infill building has led the way with players scouting the market for tear-downs. With builder margins in the 20 percent range and so much buyer pent-up demand for new construction product, it’s clear that home-building will be a leader in the 2015 market. Of course, leading corporate homebuilders are selling new homes as fast as they can build them in the suburbs.

MyMidtownMojo Sells Viewpoint Midtown AtlantaThe vibrancy of the intown and Buckhead condo markets continues to surprise. Inventory is at a record low (one to two months) and prices are rising at the rate of 1 percent per month and have been doing so for 24 months. Buckhead uber-luxury projects such as Sovereign and The Ritz-Carlton Residences, which had been sluggish, are now long sold out. The Mandarin Oriental – with unit prices in the $2 million range – only has some 18 homes remaining. The Midtown market’s key recession-plagued projects — 1010, Luxe, Viewpoint, and lower Buckhead’s The Brookwood — are also long recovered with recession buyers in those projects being rewarded richly in this seller’s market. With few or no new condo projects over 100 units on the horizon, lack of inventory will continue to drive price gains. In Midtown, only The Atlantic (some 250 units remain) and The Lowes project (60 units, give or take) are scheduled to release new inventory in 2015. Alta, a Wood Partners proposed 250-unit project on Piedmont Park, has yet to confirm whether its units will be built for sale or lease.

Interest rates continue to remain at historical record lows and lending requirements appear to be softening. Good or bad, Fannie Mae and Freddie Mac have just unveiled new mortgage programs that will allow qualified homebuyers to put down as little as three percent and President Obama has announced reductions in private mortgage insurance (PMI) rates. This should aid first-time buyers, buttressing the foundation of the marketplace, and allow trade-up buyers to migrate through the cycle.

In short, 2015 looks to be a fine year to be in the residential real estate business whether you’re a broker, a builder, a lender, a closing agent … or a buyer or seller.

Kevin L. Palmer is the CEO and founder of PalmerHouse Properties, a residential and commercial real estate agency. Prior to founding PalmerHouse Properties in 2006, Palmer spent 25 years in the financial services industry within Atlanta

Thomas Ramon Realty is affiliated with Palmer House Properties. MyMidtownMojo.com is owned by Thom Abbott. 

Thom Abbott

I'm a real estate broker living and selling the Midtown Atlanta lifestyle. From high rise condominiums to historic homes, I enjoy everything Midtown Atlanta has to offer. I'll help you find the right home in Midtown Atlanta or any of the other exciting Intown Atlanta communities that border the Midtown Area!

More Posts

Follow Me:
TwitterFacebookLinkedInPinterestGoogle PlusYouTube

When Should I Sell My Atlanta Condo?

In real estate, I often wish I had a crystal ball. It would make it so much easier for myself and everyone of my clients. I could just look into it, glance up and say, “List your condo on March 2, 2015 at 1:45pm and a Buyer will find in 10 minutes later and it will be sold in 21 days.”

But, that is not the reality of real estate, is it? I have to rely on hard work, good marketing and my knowledge of what is happening in the market. Those things, combined with you being ready to place your condo on the market at a price that makes market sense, will bring that Buyer to our door.

When Should I Sell My Atlanta Condo?

But, the Buyer has to FIND something to buy! And inventory is at an all-time low! In Midtown Atlanta for example, all the construction cranes you currently see are for rental apartments, NOT for new condominiums! Yes, there is a chance they might convert in the future to For Sale homes, but if construction is underway, they most likely do not have the type of financing that will allow for a conversion right away. (NOTE: One new building, Seventh Midtown at Peachtree and 7th Streets is new construction condominiums…..prices start at $739,000 for a 2-bedroom home)

So, here are two graphs that clearly indicate the problem….

Buying Midtown Condos

So, the Buyer’s are out there….and they are looking. But what do they have to look AT?

 

Condos For Sale Midtown Atlanta

While these are national stats from the National Association of REALTORS, they still reign true in Atlanta condos! Many buildings that I work with, have as little as 1 or two homes For Sale, and there are some that have nothing listed for sale! Nothing!

If you are “on the fence” as to whether this is the time to sell, let’s talk. Sure, there are other factors we have to consider if you are going to sell your home! When did you buy? What did you pay? What are homes selling for now in your building? The answers to some of these questions might truly say it is NOT the time for you to sell.

But having a conversation and talking about all these factors is the only real way to know what is right for you.

My phone is right here next to me.

Thom Abbott

I'm a real estate broker living and selling the Midtown Atlanta lifestyle. From high rise condominiums to historic homes, I enjoy everything Midtown Atlanta has to offer. I'll help you find the right home in Midtown Atlanta or any of the other exciting Intown Atlanta communities that border the Midtown Area!

More Posts

Follow Me:
TwitterFacebookLinkedInPinterestGoogle PlusYouTube