Real estate agents are inherently optimistic.
Our glasses are always half full or as some may say we can turn a sow’s ear into a silk purse. But four years of sluggish sales and free falling prices might cause even the most steadfast optimist to doubt that anything could end this real estate market malaise.
However, the first quarter of 2012 has given some positive signs the market is recovering.
Brokerage sales at Atlanta Fine Homes Sotheby’s International Realty have shown a positive upturn in the market. Sales from January through February were $59 million, up from $44 million for the same period last year, a 34 percent increase. Sales for all residential units across the Atlanta metro area mirror the same positive signs with a 17 percent increase in sales for February 2012 versus February 2011.
Are these robust first quarter sales enough to convince skeptics that the real estate market is truly rebounding? One barometer I use for measuring a healthy real estate market is new housing construction projects, which have been nonexistent for the last several years — until now.
At the March North Fulton Chamber of Commerce meeting an exciting new real estate development was discussed called Avalon. Avalon is a $200 million dollar mixed use project proposed in Alpharetta that may just be the shot in the arm that we all need. The project will include high end retail, class A office space, luxury apartments, 118 luxury townhomes and 14 single family homes.
A new development project of this magnitude might very well give everyone the sense of encouragement that growth is here to stay. Mark Toro, managing partner of North American Properties, is also feeling optimistic. His vision for Avalon sprang from the 100-acre mud hole once known as Prospect Park, the defunct Thomas Enterprises project that fell victim to the brutal real estate downturn.
Toro describes his new plans for the Avalon project as iconic and experiential. He states it is not just about the purchase but the ambience and energy of the environment. He likens the project to Santana Row a similar mixed use project in San Jose, Calif. This comparison brings an audible “Ahhaaa” for any who have been there.
But, the project does have challenges. The most daunting is the opposition to the number of apartments proposed for Avalon. Currently the project is slated to have 250 apartments, exceeding the allowed percentage of for rent residential units to for-sale residential units. Alpharetta City Council members are mixed on their support for the project and have delayed their final vote until April 23. Even with the challenges, everyone is resolute that a solution must be found to allow the project to move forward. Avalon gives us another sign that we are seeing a true market recovery.