State of the Union November 2013

It is November 2013 and it is COLD.  It was a low of 25 this morning.       The Condominium and Single Family Home market has finally cooled off a bit as well.    Both listings and contracts for sale are slowing down across Atlanta with the seasonality taking its toll.   Nevertheless my clients are still obtaining some of the best values out there at some of the best buildings.  between October and November my clients are purchasing over 1 million dollars worth in 1010 Midtown, Buying and Selling nearly 1 million dollars worth in The Viewpoint, and are also buying homes in the East Avenue Cottages, The Walden on Lenox, The Hillside At Lenox, The Vanderbilt, along with a couple of Single Family homes.    It is interesting that a number of my first time home buyers, and one purchaser seeking a 2nd home have all gravitated towards buildings on Lenox.   These units have run in the low $100k range for larger 1 bedrooms, and in the upper Mid-100k range for 2 bedrooms.   Lenox Road is a safe, fairly central location to buy a condo, even if the buildings are rather boring versus other Buckhead or Midtown options.

With the market finally slowing values can still be found at all price points.   There is currently a great 1 bedroom plus den at Viewpoint for $249,900, but it just received a full price offer, so it will be gone shortly.  There is also a tremendous value at The Astoria for $415,000.   It is a great 14th floor 2 bedroom, 2 bath with Auto Blinds in the living room.   The decor and furnishings are really throwing people off for this unit, but if you look past that, then you will know that this a great value.    I also recently toured a nice 16th floor Paces 325 2 bed/2 bath.  Priced at $335,000 with a large storage space, it too seems to be a good value.

In other news, the Atlanta Braves move announced this week is a crushing blow to downtown Atlanta, and the rough and tough neighborhoods of Peoplestown, and Mechanicsville.       In the past few years many land and Real Estate investors had piled into this area expecting a revamp of the Stadium and its surrounding area.    With the new Stadium being placed in Smyrna, I am curious to see what what happens next in these two troubled areas.    It looks like the city will demolish the stadium.   Many people have mentioned Horse Racing as a possible next move for the city.   I will be curious to see what comes next.

In terms of investing in condos, I finally am seeing rents stagnate, or even decline in some 1 bedroom product in Midtown.     The augmentation of Sky House, Sky House South, and the 1010 Midtown rental property “77 12th” has added approximately  600 new studio and 1 bedroom units to the Midtown rental market.    The Midtown market is still working to absorb all of this new found inventory.   Just to put it in context, if buildings cap out their lease permit at 25%, and then perhaps have another 5% for hardship leases, and perhaps another 5% illegally leased (without the express authorization of the HOA or front desk), then that is 35% of buildings units.  Thus at around 370 for Viewpoint, around 300 units for Spire, 450 for 1010, 350 for Plaze Midtown and say another 450 for Metropolis, you have a total unit count of around 2000 total glass building units.  so 35% of that is 750 units for lease.   Thus a 600 unit increase in inventory is huge!    In fact the Sky House South complex next to Viewpoint is not even open yet, thus when that opens I expect further downward pressure on Midtown rents.      That said as Midtown continues to grow I expect those unit to be absorbed, it will just take a year or two.

I am in New York 11/14-11/19.   But will be back on the grind upon my return with four closing on 11/22.       As always if you would like some information on anything mentioned above, feel free to contact me in the link below.





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