Douglas Sams, Commercial Real Estate Editor – Atlanta Business Chronicle
The pace of Atlanta condo sales, particularly within intown markets, continues to improve, according to a new report.
That pace is being driven by steep price reductions on newer condos.
Absorption increased to an average of 1.8 condo sales a month within active condominium projects in the fourth quarter of 2011, according to the report from The Marketing Directors. That was up from an average of 1.5 sales in the previous quarter.
The median sales price on newly built condos fell sharply from $294,350 in the third quarter to $265,000 at year’s end.
The 1010 Midtown condos, 5300 Lofts and Lofts at Reynoldstown Crossing were tied as the top selling projects, with 28 net sales each in the fourth quarter, according to The Marketing Directors. Condo inventory within the $250,000 to $350,000 range is getting thin, especially in Midtown, said Uri Vaknin, a Marketing Directors senior vice president.
The fourth quarter sales data confirms that projects like Viewpoint are finally selling out, decreasing the amount of new inventory remaining in the intown condo market, particularly the mid-priced segments, said Karen Rodriguez with Dorsey Alston Realtors.
Projects like Gallery are close to being sold out, with fewer than 17 of its 203 condos remaining, and the Brookwood and 1010 Midtown are about halfway sold out, she said.
“Condo buyers that have been dragging their feet over the last few years will soon realize that they have less negotiating power than they did a year ago at this time with many of the new construction projects,” Rodriguez said.