Quicker Recovery More Likely in Atlanta

Everyone has heard the bad news about the Atlanta property market but the price falls are not the worst in the country, and are expected by many experts to recover more quickly. This is partly because property here didn’t rise as quickly as many other areas, and peaked in August 2007 which was later than most of the country.

While it is true that prices have fallen 24.3% since that date other cities such as Miami, Phoenix and Las Vegas have suffered much worse price declines from their previous highs. These cities have all suffered declines of about 50% since peaking in 2006.

Atlanta’s problems began when record numbers of new homes were built between 2005 and 2007. This was fine during the property boom but as the economic downturn began to bite then prices started to decline because of an oversupply of houses.

This was further exacerbated by job losses and many people were forced to cut prices on their homes in order to sell them quickly. Most foreclosures in the area are related directly to job losses but high unemployment levels here are thought to only be a temporary problem and Atlanta’s economy is more likely to support growth than other areas which have suffered major declines in house prices.

Many large house hold names have bases in Atlanta and have seen the value of their stocks rise in 2010 with most posting double-digit returns as their industries have shown strong growth. These companies are beginning to invest in new equipment and software to deal with the expected recovery in the economy.

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Categories: Atlanta Property / Property Invest

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