[/caption]The Atlanta real estate market has not had the sharp price escalations and plunges that Miami, Phoenix, and Las Vegas have endured. But, pricing has collapsed since late 2007 as home owners seeking to sell their homes dropped prices amid swelling inventory and a smaller buyer pool as fewer prospective buyers meeting stricter lending criteria.
| Metro Area | Peak Price Month | Price Appreciation(2000 to Peak) | Recent Price Trough Month | Total Price Decline from Peak (Trough or Current Price) |
| Atlanta | September 2007 | 8% Annual 64% Total | August 2009 | 25% |
| Phoenix | June 2006 | 13% Annual 127% Total | May 2009 | 54% |
| Miami | December 2006 | 16% Annual 181% Total | May 2009 | 50% |
| Las Vegas | August 2006 | 14% Annual 134% Total | September 2009(to date) | 56% |
SOURCE: S&P/ Case-Shiller Home Price Index, released November 24, 2009
In fact, average pricing in Atlanta has dropped roughly 25% over the past two years since the peak price in September 2007. This relatively substantial price decline helps prospective buyers segment their purchasing strategy into two main approaches:
- Stable values, not much opportunity for a steep discount: Buy a home in a neighborhood where pricing has remained stable through the Atlanta real estate downturn, either declining marginally since late 2007 or not at all. The foreclosure concentration in that submarket will be low, offering limited opportunities for a “steal of a deal.” However, in a neighborhood where pricing has been less volatile, there is a greater likelihood of achieving value appreciation and lower likelihood of taking a loss on a sale in the nearer term. A foreclosure gem or two may be found, but most foreclosures will require updating (e.g., kitchen renovations, additional bathroom, new floors, etc.) and potentially other structural work.
- Example intown neighborhoods include:
- Buckhead (30305)
- North Druid Hills/ Briarcliff (30329)
- City of Decatur (30030)
- Ansley Park (30309)
- Example intown neighborhoods include:
- Sharp peak and trough, secure a tremendous home price deal: Many transitional and new condo-heavy neighborhoods experienced a steep home price increase from 2004 through late 2007 as areas historically non-preferred became more attractive with a face-lift from investments in existing home renovations and new homes. Transitional neighborhoods also tended to be the areas where a higher concentration of subprime lending occurred. Subprime mortgages have proven to be much more susceptible to foreclosure, and the resulting concentration of foreclosures has pushed prices in these neighborhoods down significantly since the peak. For prospective buyers seeking a great deal and willing to stay in a home for roughly five years, these neighborhoods are ideal for finding substantial discounts on foreclosure or short sale properties.
- Example intown neighborhoods include:
- West End/ Adair Park (30310)
- East Atlanta (30316)
- Ormewood Park (30316)
- Cabbagetown (30316)
- Home Park/ Atlantic Station (30363)
- Midtown, primarily condos (30308, 30309)
- Example intown neighborhoods include:
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