Power Breakfast: Metro home prices still falling, questions for AT&T-T-Mobile deal, Sunday alcohol, bank indictments

Metro Atlanta’s housing slump is still with us.

The average sales price of existing single-family homes in the metro area tumbled 13.6 percent in February from a year earlier, dashing hopes for the first upward pricing trend since last summer, AJC reporter Michelle Shaw writes.

According to data released Monday, metro Atlanta’s average price was $95,100 — down from $110,100 in February 2010, Shaw reports. That was the lowest average price among 17 metro areas in the National Association of Realtors’ monthly report.

Sales fell 4 percent over the same period, the data shows.

Local residential real estate experts were encouraged last month when the NAR report showed average metro area prices rose nearly 2 percent in January 2011 from a year earlier, Shaw writes.

But Monday’s data dampened the optimism.

“The economy is just so fragile right now,” said Steve Palm, of housing data firm SmartNumbers. “There is so much going on out there, in the larger economy, Japan, oil prices, and there’s just nothing for us to grab onto and build on in a positive way.”

Atlanta’s February price decline was the second largest among the major metro areas that the group surveys, Shaw writes.

Also in the AJC:

In other media:

- Henry Unger, The Biz Beat

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8 comments Add your comment

TnGelding

March 22nd, 2011
6:14 am

Ouch! But it has little to do with the economy, and much to do with the glut of homes on the market. Not to mention the poor decisions by so many that were lured into the bubble by unscrupulous agents aided by greedy loan originators. But let’s blame anybody but those responsible. They overbuilt and keep on building.

Looks like we have a chance for another up day on Wall Street. How long can it last with all the turmoil in the world? Volume was very light yesterday, and has been most days, though.

Have the commodity futures markets outlived their usefuness? Why do we continue to let speculators dictate what we pay for necessities? There has to be a better way.

The truth

March 22nd, 2011
7:15 am

And you people keep telling us the economy is turning around. Steve Palm forgot to mention that the $dollar is collapsing and salaries are coming down.

The banks were told to loan money to people whether they can afford it or not. That’s the reason the small banks are in such a mess.

The Government and the media continues to lie to the american people.

Coupla points

March 22nd, 2011
7:44 am

It’s worth noting that just because the average price of recent sales is down 13.6% , that does not mean that the value of any particular home is down the same amount. The average sales price city-wide is impacted by the proportion of high-priced and lower-priced homes sold. From what I can tell, there are fewer expensive homes in distress (and therefore fewer being sold) than lower priced homes. That causes the average sales price of the sold homes to be lower, but not neccesarily the value of your home.

It’s also worth pointing out that “unscrupulous agents and greedy loan originators” did not force anyone to buy a home or enter into a mortgage. They were sales people and were selling. Just like car salesmen, insurance salesmen, stock brokers, etc… do every single day. Buyers (in many cases) were buying homes that were well beyond their means without understaning what they were getting into. They were the irresponsible ones and are now paying the price.

The truth

March 22nd, 2011
8:04 am

It’s called self responsibility. The reason there are so many homes in foreclosure now is due to people thinking they entitled to own a home whether they can afford it or not.

FYI

March 22nd, 2011
8:43 am

Not true at all..I have seen houses that were bought as foreclosures in 2009 that have sold for more than what the owner paid for it..and these were not foreclosures that required any work at all..

Buzz G

March 22nd, 2011
8:56 am

For 30 years I listened to liberals whine about the lack of “affordable” housing. Well, now we’ve got it, and responsible people will be paying for years to come. Obama’s hope and change is working out real well for those looking for “affordable” housing.

The truth

March 22nd, 2011
9:28 am

A couple of weeks ago the AJC reported again that foreclosures continue to rise. A very small percentage of foreclosures might be sold for more than was paid for them.

over

March 23rd, 2011
8:47 pm

i thought obama’s economists said the recession was over a long time ago. Now, it’s worse than ever. what happened?