The Atlanta housing market, by and large, is experiencing a strong recovery. Many pockets, however, are still in deep distress. Literally.
A “”distressed sale”” is when a property has been sold by a lender who has already foreclosed on it, or by an “”underwater“” homeowner that’s sold via short sale. When a particular submarket is overwhelmed by distressed sales, home values typically decline, and in many cases, the free fall call is devastating.
I was perusing some Q3 2012 Atlanta sub market data and came across this interesting chart, which measures total distressed sales as a percentage of total single family home sales, by FMLS area:
Somewhat confusing if you’re not familiar with the FMLS Areas. I’ll break down the highlights:
“”Healthiest”” Areas (aka lowest % distressed sales): 121,131,132,21,23,51 (Sandy Springs, Dunwoody, Buckhead, Brookhaven, Ansley Park, Virginia Highland, Morningside, Inman Park)
Most “”Distressed”” Areas (aka highest % distressed sales): 66,53,42,33 (Exurbian Gwinnett County, Southeast Dekalb County, South Fulton County). Note that Clayton County is not included on this chart.
This chart is, of course, just one way to evaluate a housing market and a very broad approach at that. FMLS Area 52 is a perfect example- it covers the area spanning east of Emory, Inside The Perimeter, north of I-20 and south of I-85. Not exactly what I’d refer to as a single submarket, and certainly one that has some very hot pockets (it doesn’t get much hotter than Decatur). Generalities aside, I think you get the picture.
As a Realtor, I’m thrilled to see such a strong recovery afoot in Atlanta’s healthier markets. As an Atlantan, I’m still troubled by such large pockets of real estate distress.
SOURCE: Chartmaster Services, LLC Exclusively For Keller Williams Realty