An Update on Condominium Market in the Big Georgia Cities
If statistics are to be believed, some changes in the real estate trends are awaited over the next six months. These are mainly the localized changes to be observed all major US cities and Georgia cities are no exception.
According to the predictions for Georgia condominium market, it is likely to experience a combination of ups and downs through the rest of 2009. The next six months are going to be tougher for the sellers. Yet, there are clear signs that things are on a changing side and signs become obvious when we contrast the scenario of this year with that of the previous year.
There are three main areas of Georgia condominium market, where definitive signs of changes have been observed over past three months---that is from January to March.
The first involves the sales volume of residential condos over the said period.
The second relates to the sales volume of the new construction in condo properties.
The third involves the resale market for Georgia condominiums.
According to surveys, conducted by a few real estate management companies in the state of Georgia, a remarkable difference in the median price of new constructions and resale properties has been observed over this period. This difference is indicative of the difference in the affordability of the home buyers. This phenomenon---real estate experts pointed out---can mark the beginning of the end of the downturn locally, unless, other disturbing issues crop up. It has been also predicted that while the prices of newly constructed Georgia condominiums are not likely to drop in the near future, there will be further drop in the prices of resale condos. And, if we consider the theory of demand and supply, sales volume of resale condos will increase with the drop in their prices.
This clearly indicates that the market for Georgia condominiums is giving out signs of a change. It is exciting news indeed, however, not the time for going overboard. It will take another full year to reap the benefits from the changes. It is good to know is that a change for the ‘better’ is finally happening.
However, the industry experts have pointed out that sales prices in the Georgia condominium market are not going to increase in the near future. This will start happening only when the new condominiums meet the sales volume of almost 10 months of supply. This requires an increase in the sales volume and that is expected to kick off from this summer. In Georgia, unemployment is likely to reach 10% this year and even then there are hopes that year- over-year sales volume will increase in the upcoming months. And, that will be the time when we will actually start getting out of this black hole.
In a nutshell, so far as Georgia condominium market is concerned, we are definitely at the top layer of the bottom of the market. You can never foretell, when it will touch the actual bottom until you have gone past it. Some say it’s still a year away, for some it is just half its way. One thing is for sure, we are at the beginning of crawling out of the bottom.
