The Atlanta Journal and Constitution is reporting Atlanta home prices have reached new lows:
“Metro Atlanta home prices fell sharply to a new low between August and September, moving against the national trend of a slight increase, according to the Standard & Poor’s Case-Shiller Home Price Indices.
Case-Shiller set a baseline home price index of 100 in 2000, so an increase to 125 would indicate a price increase of 25 percent.
Atlanta’s index fell to 95.99 for September, which means the average home sale price is 4 percent lower than it was in 2000. It was the largest decline for a major U.S. city and came at a time when the national index climbed 0.1 percent”
Atlanta’s real estate market continues to take a hit because the job market has been slow to improve. A recent UGA study shows the job market and real estate market are locked in a a self perpetuating downward cycle:
“Georgia will not return to pre-recession employment levels until 2020, partly because the state has lost its competitive edge, according to a University of Georgia economic forecast released Tuesday. The state’s growth engines of the past — housing and in-migration of workers and retirees — are likely to remain stalled for many years, the forecast said.”
Do not expec 2012 to bring an upward tick in home prices. Do expect the supply and demand to gradually come to equilibrium and more and more foreclosed homes are bein purchased by investors.