Atlanta has fewer new condos to offer potential buyers than at any point in more than a decade, as intown apartments have stolen the development mojo and several Recession-era condo projects have been converted to apartments. As the Atlanta Business Chronicle reports, the dearth of condo offerings has some prognosticators believing new condo projects could soon make a comeback, and that the conversion of apartments to for-purchase residences could happen sooner than expected. Citing a new report from Haddow and Co., an Atlanta real estate consultant, the newspaper highlights some interesting numbers: At the end of last year, Atlanta had 1,171 unsold units in 66 condo projects that had never sold out; as the market teetered on the Recessionary cliff at year-end 2007, the city was awash in 7,252 unsold units, in 141 projects. The result? Resales jumped 21 percent last year, with a 19.3 percent climb in average price to (a still quite low) $167,200.
Here's an encouraging quote for Atlanta condo owners looking to offload their homes: Due to a lack in inventory, "I think 2013 is probably going to be the first real explosion in pricing in terms of (condo) resale," an executive with Atlanta Fine Homes Sotheby's International Realty told the newspaper. What's more, there's talk of bidding wars breaking out these days for condos, in the vein of single-family homes in hot Atlanta submarkets. This could be a welcome surprise for condo owners accustomed to being mired in the glut of intown inventory of recent years.
Still, as the newspaper points out, the improving market fundamentals are laying out the red carpet for new condo projects, but business insiders have heard of no new developments in the pipeline. Instead, a first step could be widespread apartment-to-condo conversions. Likely candidates, according to one expert: high-profile properties such as Mezzo Atlanta and The Atlantic.