CONDO SUPPLY DWINDLES

We're running out of new condo units. Haddow & Co. chief David Haddow  says that's a good thing. He tells us available first-generation condo units within Intown Atlanta's boundaries have fallen below 3K for the first time since 2003.
 
A number of different factors have played into this trend: nearly non-existent new construction, some units that reverted back to apartments, or projects that altogether ceased activity, such as the Peach Building in Buckhead. But the biggest factor has been cost. ?Price has come down 30% to 40%  in the past 12 months,? David says. ?We're selling units at the expense of price.? Condos priced $350K or less  is the sweet spot for 75% of those new units sold. On the other end, the $1M-plus luxury market is  still wallowing  with a lack of sales—only 25% of those units have sold, David says. It will be a long time before new condo construction is even contemplated, he notes. Specifically, condo prices have to rise again to a point to justify it: ?That's not going to happen overnight.?

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Related Topics: David Haddow , Intown Atlanta
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