Relocation Destination: Your Guide to The Atlanta Real Estate Market

By Pamela A. Keene

KNOWAtlanta’s Advisory Board is comprised of experts in various industries specializing in relocation. Given the current climate in the real estate market, we’ve assembled our panel of experts to provide you with the inside scoop on what’s going on in Atlanta and why your move here is a good decision.

Our panelists are Dana Eskridge, Metro Brokers/GMAC Real Estate; Peggy Neldner, CB Relocation/Coldwell Banker/Atlanta; Peggy Slappey, Peggy Slappey Properties; and Peggy Sullivan, Pathway Communities.

How does Atlanta compare with other cities i n terms of relocation and home values?

Sullivan: Historically, Atlanta has been a hot relocation market, and even in this economic swing, Atlanta will continue to attract new companies and grow existing ones. Atlanta’s economic infrastructure is solid and couple that with desirable living environments and a median home price below $200,000, Atlanta will continue to thrive in terms of relocations.

Slappey: Atlanta can proudly boast having some of the nation’s best home values. The city is robust and conditions are stronger in Georgia than in many other areas across the nation. Some parts of the country are struggling with a 10 to 20 percent drop in home sale prices while Atlanta prices remain stable.

Neldner: Atlanta’s metro home appreciations (according to the OFHEO Index) are up 1.4 percent versus the first quarter a year ago, compared with the South Atlantic Region (based on the same OFHEO index) reporting a 1 percent decrease.

Sullivan: Consumer demand is the name of the game when it comes to home values. Forsyth and Coweta counties are top-performers. Forsyth County because of its low tax base and economic development initiatives, and Coweta County because of its low levels of housing inventory and proximity to the airport and downtown Atlanta. And, fortunately, over the past 10 years, the Atlanta area has not had exorbitant home appreciation levels like Florida, New York and California. Steady wins the race!

Why is Atlanta such a draw for relocation?

Slappey: Atlanta has the distinction of being a vibrant city with the heart and soul of the South and a gateway to the world. With strong support for business, excellent housing value and opportunity, vigorous higher education institutions, a good transportation hub and abundant arts and entertainment, Atlanta is the crown jewel for business expansion. Quality of life, abundance of opportunity, terrific location, great weather and a business-supportive state make Atlanta a top contender for relocation.

Neldner: Atlanta has several factors that attract people to our city. The price of doing business is relatively cost-effective. There are several degree-granting colleges and universities that provide companies with potential employee recruiting opportunities. Atlanta is considered a major transportation hub, the quality of life and affordability of housing is attractive to many.

Also, according to Forbes magazine, (January 2008) and the Metro Area Chamber of Commerce, Atlanta was ranked fourth out of 10 cities for “Best City for Jobs.” The region’s unemployment rate is consistently below the national average. And Atlanta was ranked No. 1 for the “Best place to buy a house” by Money magazine (April 2008).

Eskridge: It’s very affordable to live in Atlanta. The housing and cost of living is very affordable. Many major companies call Atlanta home and even more have local offices. Atlanta is never going to decrease in population. We have just as many people moving in as we do people moving out. Plus, many people follow their families to Atlanta.

Sullivan: With so many award-winning colleges and universities in the Atlanta-area, we offer relocating companies a built-in work force. Also, there are good state and local tax incentives.

As far as developers are concerned, what is the economic development outlook for Atlanta compared to other areas of the country?

Sullivan: The outlook is bright and Atlanta is well-positioned for success. Atlanta has a secret weapon in its economic development arsenal and it is the State of Georgia. Unlike many other areas of the country, the State of Georgia is proactive and doing a great job in attracting both international and U.S.-based companies to the area.

Eskridge: After the election, the market will begin to pick up. People who are waiting on the fence will begin missing out on good opportunities because prices will begin to go up. This is an ideal time for investors, and first-time home buyers need to start looking at what they can do to get in a home quickly because this is the best time to purchase. It’s not going to get better than it is now. Buyers just need to talk to a lender and find out what they can afford and then talk to a Realtor to help them get started and educate them on the process.

Are there specific products/trends in which Atlanta has taken the lead and set the pace for the rest of the nation?

Slappey: The moderate weather in Atlanta has significantly contributed to the emerging trend of outdoor living spaces. Extending living space to the outdoors is created with larger decks and patios as well as outdoor gathering spaces that feature fireplaces and kitchen elements. From waterfalls to herb gardens or cozy gathering spaces, the new room is outside. The fantastic part of this trend in Atlanta is that it can be found in homes priced from the mid $200s up to the millions, and you can use this room most of the year.

Sullivan: Many developers and builders are taking advantage of Atlanta’s year-round outdoor living opportunities and implementing cutting-edge living environments designed for 365 days-a-year outdoor entertaining.

Neldner: Based on Claritas’ (Second Quarter of 2008) Atlanta Residential Survey, the city is seeing a significant percentage increase in the 60-plus population.
What are your predictions for the next 12 to 18 months for the residential real estate market in metro Atlanta?

Sullivan: A positive indicator is the fact that new home construction starts are down. This allows developers and builders to sell existing inventory, which in turn, will lead to an opening of the market in the next 12 to 18 months.

Slappey: My outlook is positive and I expect the Atlanta market will be one of the healthiest in the country. The recently passed housing stimulus bill should have a positive impact on our market immediately. The $7,500 tax credit for first-time homebuyers is a tremendous incentive to make a move. The prices are right, the rates are low, and along with this new tax credit, now is an unprecedented time to buy your first home.

Although it seems the housing market is bouncing on the bottom, homes continue to sell, just at a slower pace than their peak in 2006. New home starts have been drastically reduced, with some reports stating a 55 to 60 percent drop. Sales are continuing and the good inventory will soon be depleted. With attractive prices and gorgeous homes, buyers are choosing the best looking ones. I have heard it referred to as a “Beauty Contest” Market, with the most beautiful homes winning the deal. All of this will keep the Atlanta market moving upward.

“Housing Predictor” projects that Atlanta will remain one of the top 25 appreciating markets in the country for 2009, and is considered one of the nation’s best home values.

Any additional advice?

Slappey: If I had the opportunity to select any where in the country to go through this housing market, I would choose Atlanta. The city has experienced a gradual appreciation in home prices over the years—not the skyrocketing escalation other cities have seen. Thus the decreases in this housing market have been slight when compared to other places. Atlanta home prices remain stable even while it is a buyer’s market. The job market also remains strong in Atlanta, with a projection of 52,000 new jobs for 2008.

Even though it’s a buyer’s market, the best homes are being absorbed. A key indicator for this is that the days on the market for a listing are decreasing and inventory is being reduced. Buyers should seize this moment!