Like most of the nation, Atlanta was hit hard by the recession and the real estate bubble burst that rocked the market a couple years ago. In fact, the Atlanta area hit its lowest point on the Zillow Home Value Index in December of 2011 when it dipped down to 117K. But unlike many parts of the country, the Atlanta housing market has rebounded dramatically in the last couple of years and shows strong growth in a couple of different sectors.
Atlanta Leads in Suburban Growth
According to the Redfin Research Center, which publishes real estate market reports, 13 % of Atlanta real estate agents reported a rise in interest in suburban properties this year compared to last year. That is considerably higher than the national average of 4% and places demand for suburban properties in the Atlanta area among the highest in the country. The good news for buyers is that Atlanta also has a higher number of finished lots that are ready to be built on than any other market, according to Metro Study Report, meaning that a large supply should keep prices low despite the high demand.
Foreclosure Sales are Helping the Market
A couple of years ago Atlanta was one of the cities hit the hardest by the foreclosure crisis that ripped through the Sunbelt. Negative equity still remains high in Atlanta, but the number of residents that are upside down on their mortgages has dropped by more than %15 from 2013 to 2014, according to a recent article on CNBC. This is because investors are picking up distressed properties and putting them on the rental market, according to the article. Although inventory remains high, low prices are driving demand for these bargain properties and helping to fuel the overall market, increasing median home prices across the city.
The Beltline Drives Urban Revitalization
A counter point to the suburban growth of Atlanta, recent urban redevelopment projects in the Beltline area of Atlanta are turning historic parts of the inner city into hot real estate markets. The Old Fourth Ward for example, once run down and dangerous, is now one of the most sought after neighborhoods in Atlanta and is bursting with high end condos and townhouses. This is due in large part to public investments like the brand new Atlanta Street Car and the area’s recently opened Historic Fourth Ward Park. Experts predict that the Beltline will continue to drive growth in central Atlanta and the market will only be getting more and more competitive there.
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