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

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

Atlanta Federal Reserve Lockhart sees interest rate hike by middle of the year

Midtown Atlanta Real Estate QuestionsHave you been sitting on the “real estate fence?”

“Should I buy or should I wait?”

Well, the Atlanta Federal Reserve has spoken….and there is almost certainty that interest rates will rise at some point in 2015.

In an address to the Rotary Club of Atlanta, Federal Reserve Bank of Atlanta President and CEO, Dennis Lockhart summed it up in the first remarks of his speech….

As I look back on 2014 and look ahead to 2015, I can comfortably assert that, more and more, the U.S. economy is hitting on all cylinders. The recovery that began in 2009 is well-advanced, and we are getting closer to a point where the Fed’s Federal Open Market Committee (FOMC), the body that formulates monetary policy, can begin a process of normalizing the interest-rate environment. That process will begin with so-called “liftoff”—that is, the first increase in the policy rate.

So, perhaps we might want to jump off that fence….a minor increase in interest rates can change what you might qualify for in your mortgage!!!

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

Top 10 School Districts in Atlanta GA

Metro Atlanta Top 10 Schools As a real estate broker, I’m often asked about schools. Since I don’t have children (and even if I did) I always advise my clients to do their own research into schools. What may be important to one parent, may not be important to the next, right?

Top 10 School Districts in Atlanta GA

But we found a source in Niche.com and wanted to share it. Niche is transforming the way people make big life decisions. By providing reviews and insight from everyday experts, they make choosing a neighborhood, college, or K-12 school a more transparent process. Founded in 2002 by Carnegie Mellon University students as CollegeProwler.com, they have since grown into one of the largest content startups in the country. Obsessed with providing students, families, and professionals with best-in-class content and deep insight into big life decisions, every year, they help millions of people find their niche and thrive within it.

So exactly WHAT is the Niche School District Ranking Methodology?

  • Students are very happy with their experience in all aspects including academics, teachers, health, safety, resources, facilities, extracurriculars, sports, and fitness;
  • District schools are exceptional academic institutions in terms of teachers, students, resources for learning, and student outcomes;
  • District schools are made up of a diverse population and fosters an accepting, positive school culture;
  • Students are actively involved in a variety of extracurriculars and sports the district offers.

So……

Top 10 School Districts in Atlanta GA

In the essence of full disclosure, we took this list right from the Niche.com website…so a couple of the school districts are a stretch to be called “Metro Atlanta” but we wanted to list them as they were on their site!

  1. Top 10 Schools Metro AtlantaBuford City Schools
  2. Decatur City Schools
  3. Oconee County Schools
  4. Forsyth County Schools
  5. Bremen City Schools
  6. Gwinnett County Schools
  7. Carrollton City Schools
  8. Morgan County Schools
  9. Marietta City Schools
  10. Cherokee County Schools
  11. Fayette County Schools
  12. Cobb County Schools
  13. Cartersville City Schools
  14. Fulton County Schools

Again, we stress this information comes from Niche.com, and we are simply sharing it. Each parent and student should look at, and do their own research and investigation as to which school system is best for them. 

As you look at this list, you can quickly see why the Metro Atlanta suburbs sprawl as families look to live in good school systems, and most of those circle the City of Atlanta! 

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