Category Archives: Real Estate

• 80% of closings in the overall market were priced under $300,000; closing analysis from FMLS continues this trend through 3Q10.
• 464 closed units through mid-year 2010, which is down 22% from the mid-year 2009 figure of 597.
• Smart Numbers reported 464 closings through mid-year 2010.  FMLS listed 131 closings for Q3 alone.
• The 2010 mid-year average sales price was $272,264, which is down 5.7% from the mid-year 2009 average of $288,934.  The 3Q10 average closed price in FMLS was $252,120.
• According to the Mid-Year 2010 Haddow report, the number of unsold units reached its lowest level since year-end 2003. With little to no new construction activity bringing new condominiums to the market, this number will continue to decline.
• Half of the top 10 selling sites are marketed by Coldwell Banker NRT Development Advisors, more than any other company.
• Nearly 60% of all new construction condo sales activity took place in the Buckhead and Midtown sub-markets.

NEW CONSTRUCTION CONDO SUB-MARKETS

Buckhead

• The market had a slightly higher average sales price ($464,468), which could be attributed to absorption of higher-priced homes at 10 Terminus Place, as well as closings at Sovereign and St. Regis.  The 3Q10 average in FMLS is $509,384.
• 49% of closings were priced under $300,000; 86% of the market is priced under $550,000.  Closing analysis from FMLS continues this trend through 3Q10.
• 10 Terminus Place accounts for almost 40% of activity in the sub-market (10 Terminus Place and Gallery Residences, combined, account for 60% of the Buckhead market).  Closing analysis from FMLS continues this trend through 3Q10.
• There has been slow absorption in the $1M+ price range; 2 of the 3 closings at St. Regis were pre-sale contracts (the 3rd was written in December 2009 and closed in January 2010), and there were 2 closings at Sovereign.
• Buckhead typically offers aggressive pricing and developer incentives.

Midtown

• Midtown has nearly double the volume of Buckhead (172 homes closed through mid-year and there were 28 closings listed in FMLS in 3Q10).
• The market has lower price points than Buckhead (77% of closings were priced under $300,000, compared to 50% in Buckhead); closing analysis from FMLS continues this trend through 3Q10.
• Viewpoint lead the market, followed by Twelve Centennial (which is technically a Downtown property), 1010 Midtown and White Provision.

Downtown

• Downtown had much lower price points than other sub-markets (97% of the market is priced under $300,000 and 74% is priced under $200,000). Closing analysis from FMLS continues this trend through 3Q10.
• Castleberry Point lead the market, followed by Central City, Oakland Park and Stacks Lofts.

Vinings

• Average price points were in line with other sub-markets (88% of the market is priced under $300,000); closing analysis from FMLS continues this trend through 3Q10.
• Aberdeen recently began closings (2 homes closed in 2010 at $1.9M and $2.0M).

RESALE

• There were 480 resale condominium closings in all metro-Atlanta during 3Q10, according to FMLS.
• Buckhead: 65 closed, average sales price of $211,573, accounted for 14% market share
• Midtown: 114 closed, average sales price of $132,670, accounted for 24% of market share
• Downtown: 41 closed, average sales price of $95,245, accounted for 9% of market share
• All other markets account for 54% of total resale market in 3Q
• There were aggressive pricing and incentives offered by new construction sites in Buckhead, Midtown and Downtown, which could be taking market share away from resale.

BUILDING PERMITS (data from DEC International)

• As of 9/27/10 for the 27-county metro area, 3,358 single family building permits were pulled for the fist 10 months of this year, compared to 5,577 in the preceding 12 months.
• The top builder was DR Horton with 303 permits (compared to 624 last year), followed by Ryland and Pulte.  To be in the top 20, a builder would need a minimum of 33 permits.
• The average valuation for these permits was $157,123. Assuming builders undervalue or at least value their property at cost, we could assume the retail price of these homes will be under $250,000 on average. 74% of all new home sales in a 15-county area are under $350,000; 61% are under $275,000.
• At this pace, the 2010 total permit number will likely be fewer than 6,000 (probably close to 5,500, which will be slightly more than the 2009 number of 4,800).