From a Buyer and Seller perspective, the market is improving. Midtown Atlanta condominiums are getting multiple offers and bidding wars! If you’re a Seller and you want to Sell, and can price it right…it WILL sell!!
But, rewind back to 2007-2008 when there were several new construction projects selling in Midtown Atlanta. As I looked at the skyline grow, it was exciting! But in the back of my mind, I just had to think…
“This is all fine and wonderful, and looks amazing, but WHERE are the people going to come from to fill all these condominiums they have built?”
Well, it’s taken us from then, until now to eat up most of that inventory, and give already existing owners a chance to sell their homes! Ah yes, we still have challenges between what they paid and what they can sell for, but at least we know we are headed in the right direction.
I wonder if we can say the same about apartment buildings. I mean it takes one hand to count the projects under construction, or proposed right now…and this is JUST in Midtown/Midtown West:
- Sky House – Developed by Novare Group – West Peachtree Street (Scheduled Opening December 2012)
- 77 12th Street – Developed by Daniel Realty/Selig Enterprises – 12th Street (Scheduled Opening May, 2013)
- 100 6th Street – Developed by Novare Group – 6th Street next to Viewpoint (Proposed and in development stage)
- Ponce/North Avenue – 300 units in a building on the block where the Abby is located
- West Midtown – 14th and Howell Mill — Construction underway on a new apartment building
Are you seeing a pattern here? Once again, I’m asking the question, “Where are all the people coming from to fill all these apartments?” Or, the $100 question, how long will they BE apartments before they are converted to condominiums?
We are either going to have a HUGE glut of apartments, or a bunch of new condominium inventory on our hands in the next 2-3 years. What does that mean for the real estate market? Well for those of you that either own investment property, or are owners that have obtained a leasing permit, you are going to feel some pressure on what you are going to be able to charge for rent. If your place is not the new and shiny penny, the renter’s maybe looking elsewhere. Or it will push down your rental rates if everyone if flocking to the new and shiny penny.
Or, there will be sales……