ATLANTA LUXURY HOMES – WHAT THE HECK IS HAPPENING WITH BUCHEAD HOME PRICES? – May 20, 2009
strip_tags(I was checking out our new Market Update Page provided by Altos Research the other day, clicking through the 15 zip codes we make available to clients.
When I clicked on the Median Price Chart for Atlanta priciest zip code 30327, I was surprised to find median prices in a free fall in this area of town and in this segment of the market – which held up reasonably well through the first part of the recession.
But viewing the 2 year chart below, it appears that whatever price mechanisms were once supporting Buckhead prices, now appear to be gone.
Median prices rose about $100k from April 2007 through August 2008.
Since reaching the apex in August 2008, at $1.59 million, the median price has fallen by about $300k and prices are still headed sharply lower.
While prices in 30305 have not and are not falling as quickly, the trend since April 2007 has also been lower.
Many observers who contribute to CNBC are calling for a bottom to occur in June 2009. From my personal observation of the variables and forces that impact home price trends: Money supply, Lending Standards, # Foreclosures and Short Sales in a zip code, Inventory and Days on Market, Employment conditions, Stock Market trends, Consumer Sentiment and others, I would support and echo this prediction.
Therefore, if you are planning to sell in Buckhead you may want to hold up for a while. If you are planning to buy in Buckhead, you probably have about 3 months before prices will begin to head higher.
In my next post I will deal with inventory levels in 30327 and 30305 and give insight into what that variable tells us about where this Atlanta Luxury Homes market is headed.
Please give me your feedback on this post and tell me what other areas of the Atlanta market you would like to discuss.