The AJC just had an interesting article titled, “Luxury developers cut penthouse prices.” It basically outlined how many $1,000,000 condos are currently on the Buckhead and Atlanta real estate market. I thought this was an interesting quote from the article:
Between 2004 and 2007, about two dozen condos in the seven-figure price range were sold, Palm said. But as more were built, those numbers grew and created a market of its own. Since 2007, nearly 80 condos have sold for more than $1 million. That figure may give builders the impression that sales are picking up, but Palm doesn’t read the data that way.
“The market now has more condos for sale at this price than have ever been sold at this price,” he said. “That just doesn’t make any sense in this housing market.”
The fact there are more million dollar condos currently on the Buckhead market, than ever sold before, dovetails with a recent article I posted. Here is what I wrote about the absorption rate for million dollar condos in a September 1st, 2009 article on Atlanta absorption rates:
I also noticed the $1,000,000 and over Buckhead townhome and condo category has a ridiculous absorbtion rate – 12 years for the average property. There is no doubt that this is a particularly difficult market segment to sell a property, but 12 years is a bit extreme. I think this is because many new, still unfinished buildings, are listing all of the anticipated units for pre-sales. Do you consider an unbuilt property, but still available for pre-sale, part of the market inventory; a debatable point I suppose.
There are still some great deals out there for premium Atlanta real estate. If you’d like to go out and look at some properties, before the inventory numbers start falling, please feel free to call me.
Related posts: