We recently pulled the top 50 price reductions in the Atlanta real estate market. Does this mean these are the absolutely best deals available? No, but it is interesting to take a look at top decreases to find out how that impacts you as a buyer.
When pulling the reductions, we removed homes that saw a price reduction of over 90% as the vast majority of these Atlanta home prices were typos by the real estate agent ($2,950,000 instead of $295,000) or were intentionally priced high to artificially simulate a large price reduction ($950,000 then dropped to $300,000 within minutes of entering the listing).
Here are the most noteworthy Atlanta price reductions in order of largest % off original list price:
- 956 Palmetto Ave Atlanta, GA
- 1329 Greenwich St Atlanta, GA
- 540 Sunset Ave Atlanta, GA
Court Decatur, GA
Lane #414 Atlanta, GA
- 4437 Club Drive Atlanta,GA
- 656 Queen Street Atlanta, GA
- 536 Norfolk Street Atlanta, GA
St Atlanta, GA
- 683 Pryor Street Atlanta, GA
- 735 Pearce Street Atlanta, GA
- 492 Lawton Street Atlanta, GA
Street Atlanta, GA
Out of the top 50 Atlanta price reductions as of June 4th, we saw a range of 75% off the original list price to as much as 89%. 94% of the listings involved are either a short sale or a foreclosure. 31 of the listings are now under contract or have just closed.
What does this tell us about the Atlanta real estate market?
- Banks are starting to be much more aggressive in pricing their homes to attract buyers (particularly first-time homebuyers and investors)
- Many banks are pricing homes well-below current market levels in order to induce several buyers to make offers and create a bidding war to work the sales price back up. This also helps sell the property quickly to get it off their books.
- There is quite a bit of activity for homes under $50,000 than need substantial work that investors are buying. This is good in that it helps lower inventory levels. Hopefully, most of these investors will rehab these properties to rent them out or to sell them, but not in 2-3 months, but rather 2-3 years. It's much better for Atlanta to have homeowners in the homes instead of renters or investors because of pride of ownership and commitment to the community.
- The top 15 biggest reductions are all within the city of Atlanta.
- There are many "deals" to be had, but just because a home has seen a drastic price reduction, it doesn't necessarily mean it is a great value. The home may have been priced badly by an agent or been priced high on purpose so to artificially create a huge price reduction.
- Many factors are in place (large amount of inventory, low interest rates, first-time homebuyer incentives) to make this a time to buy a home, but everyone's circumstances are different. Could the Atlanta real estate market still go down further? Sure. In fact, several experts still believe we have further to fall before plateauing.
- It is important to always do your research and not to get emotionally invested in a property to the point where you can't walk away from a property if your highest and best is not accepted or in a multiple offer scenario.
- A foreclosure or short sale may or may not be the best choice for your needs or timeframe. Despite recent legislation, the short sale process is still extremely lengthy and drawn-out. Educate yourself on the process and the time constraints involved before plowing headlong into the buying a distressed property.