Metro Atlanta Home Prices Drop 11.2 Percent

Posted by on Wednesday, January 28th, 2009 at 7:15am.

The Standard and Poor's Case-Schiller Home Price Index report for November 2007 was just released, and metro Atlanta's home prices dropped 11.2 percent when compared to the same period a year earlier.

The good news? An 11.2 percent drop is significant; however, it beats the national average of 18.2 percent. Some other large metropolitan areas saw prices drop over 30 percent, while the best performer was Dallas, Texas which only had a 3.3 percent drop.

In my opinion, as long as the record number of metro Atlanta forclosures continues, we'll see average home prices drop.  Banks are selling homes at drastically reduced prices in an effort to move them. This is providing great opportunities for buyers, but affecting metro Atlanta home values. Don't expect to see home values begin to rebound until the inventory of bank foreclosures is significantly reduced.

The Atlanta Journal Constitution published the following article in today's issue that summarizes the latest figures:

The Atlanta Journal-Constitution

Atlanta’s drop in home prices not as sharp as elsewhere

Nationally, prices are down 18.2% compared to year earlier

MICHAEL E. KANELL

The Atlanta Journal-Constitution

Tuesday, January 27, 2009

Metro Atlanta home prices have fallen along with those in the rest of the nation’s largest urban areas during the past year, but the descent here was not quite as fast, according to a high-profile ranking released Tuesday.

In the 20 largest metropolitan areas, home prices in November were down an average of 18.2 percent from November 2007, according to Standard & Poor’s Case-Shiller Home Price Index.

While the report was not quite as bad as some expected, it was the sharpest one-year fall ever.

“The disappointing news is that the declines are still accelerating, said Adam York, an economic analyst at Wachovia. “It emphasizes just how much stress the housing market is under.

The worst of the damage has come in cities that led the housing bubble earlier this decade.

For instance, metropolitan Phoenix saw home prices plunge 32.9 percent in November from a year earlier, while prices in Las Vegas dropped 31.7 percent and home values in San Francisco fell 30.8 percent.

By contrast, metro Atlanta, which was continually among the leaders in home construction, saw prices steadily advance, but never at that kind of pace. So while the Atlanta real estate market has been badly pounded, it has not suffered quite as much, with prices falling an average of 11.2 percent over the one-year period of the survey, according to Case-Shiller.

From October to November, Atlanta prices slipped 2.7 percent.

Its bubble also did not burst quite as soon as elsewhere: Atlanta continued to see price increases after the national average had peaked and started downward.

The Case-Schiller index for the largest 20 markets topped out and started to slip in mid-2006 — a full year before prices crested in Atlanta.

By November 2008, Atlanta prices had dropped 14.6 percent from that peak. In contrast, the overall index is down 25 percent. Atlanta’s prices are now back to levels last seen in May 2003. The overall index has returned to its level of early 2004, according to Case-Shiller.

None of the 20 cities in the Case-Shiller index posted a gain in prices from October to November, or from November 2007 to November 2008. The smallest declines in the surveyed cities came in Dallas, which dipped only 3.3 percent from last year, and Denver, where prices slipped just 4.3 percent.

David M. Blitzer, chairman of the index committee at Standard & Poor’s, said he was encouraged that, after months of worse-than-expected declines in housing statistics, the real data weren’t drastically worse than the expectations.

“Maybe the pessimism has been slightly overdone, he said.

Still, trying to determine when prices will bottom out remains guesswork. The most optimistic projections: mid-2009.

— The Associated Press contributed to this article.

8 Responses to "Metro Atlanta Home Prices Drop 11.2 Percent"

Scott Allan wrote: True about additional foreclosures causing higher declines. I know a lot of areas that are worse than your area. Hopefully soon we get to the bottom. Good luck.

Posted on Wednesday, January 28th, 2009 at 1:22pm.

Thomas Palmer wrote: The southeast is down but not as much as other parts of the country. Charlotte is down about 5% finally, after holding steady for so long. From what I've heard, Salt Lake City is now about the strongest area. Hopefully the government's new tax credit will help turn things around.

Posted on Friday, February 6th, 2009 at 5:13pm.

Cary real estate wrote: The disappointing news is that the declines are still accelerating. t emphasizes just how much stress the housing market is under.”

The worst of the damage has come in cities that led the housing bubble earlier this decade.

For instance, metropolitan Phoenix saw home prices plunge 32.9 percent in November from a year earlier, while prices in Las Vegas dropped 31.7 percent and home values in San Francisco fell 30.8 percent.

Regards,
Michael McLaughlin, Cary real estate

Posted on Wednesday, February 18th, 2009 at 10:09pm.

Tina Fountain wrote: Michael, those are some hugh drops in prices. We're busy with buyers and they are picking up some great deals right now. It's a good time to be a buyer!

Posted on Wednesday, February 18th, 2009 at 10:19pm.

Colleen Lane wrote: As I read this post all I could think about was how now is the time to be a buyer! If only we could make a living that way! :D

Posted on Tuesday, March 3rd, 2009 at 7:09am.

Cary real estate wrote: 11.2% is not really bad compare to 18% or higher than that. Why bank just don't make new agreements or lessen the mortgage of the home owner so they don't need to foreclose it. They will foreclose the house and sell it in a much lower price.In this bad times, I don't think there are to many people want to buy new houses. I guess most family right now will just keep what they have, as long as it is not foreclose to save money. Cheers, Michael McLaughlin, Cary real estate

Posted on Tuesday, March 10th, 2009 at 9:03pm.

panama property wrote: The Metro Atlanta, which was continually among the leaders in home construction, saw prices steadily advance, but never at that kind of pace. So while Atlanta’s real estate market has been badly pounded, it has not suffered quite as much, with prices falling an average of 11.2 percent over the one-year period of the survey, according to Case-Shiller.

Cheers, Samuel(The guy Searching for Panama property)

Posted on Thursday, May 14th, 2009 at 2:34pm.

panama property wrote: Phoenix, Las Vegas, San Francisco and Miami all lost roughly one-third of their value during the past year and are down more than 40 percent since their peak.

Atlanta never had the stratospheric surge of those cities, thanks largely to a building boom that at its most frenetic was adding almost 60,000 homes a year.

Prices have fallen about 20 percent since peaking in the summer of 2007, according to the survey.

Regards,
Alex,
Panama property.

Posted on Monday, May 18th, 2009 at 4:09pm.

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