I just got Steve Palm’s Smart Numbers letter for January, and he reports some telling statistics when he surveyed the 14 metropolitan Atlanta counties. Read on…

A nearly 40% year over year decline from last January. A Nearly 50% decline for condo sales.

When demand declines, prices soon follow. Condo prices are down nearly 10% and are expected to go down even further - there is nearly 12 months supply for resale condos and a very high 16 months of supply for new condos. Thanks Ivanka Trump (the so-called “next generation of Trump style” - I hope that doesn’t mean she has a comb-over hairdo in her future).

Until then, lets digress from the bad news and let a photo of Ivanka take our breath away…

Lets keep talking about what Ivanka hath wrought: the 16 months supply is only the supply that is listed! The actual floor plans available that are not up and ready for sale is - GULP - 4 years worth of inventory. Lets keep an eye on luxury condos - we need Buyers, sexy, wealthy, international buyers!

The average single family house price is down by about 20% from the all time high of June 2007 - the all time high was about $285,000 - the average sale in January was $240,844.00. 20% is a “correction.”

Oh, by the way, did you read that part about when demand declines, prices soon follow? Take heed, another correction is coming for many unhealthy Atlanta submarkets.

Mark my word, the neighborhoods with good fundamentals - cohesive curb appeal, good public schools, attractive locations - those neighborhoods, will thrive in a limited demand market. Read the rest of this entry »