Metro Atlanta housing prices plummet

We kicked off the week talking about the economic challenges facing metro Atlanta and the region’s need to adapt to suit the modern real estate marketplace.

Yesterday, we got a rather harsh confirmation that change is indeed necessary. According to the latest S&P Case-Shillernumbers, housing prices in the 20 largest metro areas fell by 3.5 percent from February 2011 to February 2012.

In the 28-county metro Atlanta region, however, the year-to-year price decline was 17.3 percent, easily the largest drop in the nation. The decline was twice as large as that in Las Vegas, the second worst-performing metro region in the country.

As the Case-Shiller analysts put it:

“Phoenix and Atlanta stand out this month in terms of their contrasting relative strength and weakness in the early 2012 housing market. At one end of the spectrum, we have Atlanta posting a double-digit, and lowest on record, annual rate at -17.3%. Atlanta has now recorded five consecutive months of double-digit negative annual rates and seven consecutive monthly declines. On the other hand, Phoenix has posted two consecutive months of positive annual rates, with its latest being +3.3%, and five consecutive positive monthly returns.”

Five years ago, housing values in Atlanta were comparable to those in Charlotte, Dallas, Denver and Cleveland. In fact, Atlanta was a close second to Denver among those five. But as the chart below documents, that’s no longer the case.

housing

I don’t think you can look at that data and shrug it off as a momentary blip. It’s also not the inevitable consequence of the larger national economic situation. This is a long-term problem, and it’s a metro Atlanta problem.

– Jay Bookman

447 comments Add your comment

ragnar danneskjold

April 25th, 2012
10:02 am

Dear JamVet @ 10:00, good morning, take your meds and quit blathering about something outside your experience. All of us cleaning up the mess can see what happened. You clearly do not know anything about the zombie banks of 2008.

USinUK

April 25th, 2012
10:03 am

Bro – “no other person has ever been able to wreak that much havoc and live to see another day.”

:lol:

it’s the John McClane of legislation …

Adam

April 25th, 2012
10:03 am

Joseph bids December 9, 2011. Anyone got a closer time to now?

Steve - USA (I support "None Of The Above")

April 25th, 2012
10:03 am

Metro Atlanta was one of the hottest markets before the crash so it is logical they they would be one of the biggest fallers (sp?).

Neighborhoods inside the perimeter have also hit a danger zone in that their values have fallen to such a low price that most banks will not make loans on that small of an amount.

Joseph

April 25th, 2012
10:04 am

Adam:

Have you ever used Google? Theres plenty of examples. Especially of other dems doing it… Thats all they got becuase they certainly can’t site improvements in anything….

USinUK

April 25th, 2012
10:04 am

EJMoosa – “Freddie Mac and Fannie mae set the standards for the loans they would “purchase” from the brokers. ”

contrary to your assertion, neither of them EVER espoused setting aside prudential lending standards

no government agency did

banks and non-banking lending institutions did that all on their own because they knew they could sell the mortgages on and take the risk off their books.

NOTHING WHATSOEVER TO DO WITH CRA

Joseph

April 25th, 2012
10:06 am

Since u set a six month timetable I think that works???? LOL….

Don't Tread

April 25th, 2012
10:06 am

Loose standards for borrowers + overbuilding + decrease in real wages + unemployment + massive student loan debt = the semi-permanent mess we have now. It’s not going away anytime soon. Hope and Change, indeed.

Doggone/GA

April 25th, 2012
10:07 am

“NOTHING WHATSOEVER TO DO WITH CRA”

and, in fact, CRA specifically mentions that nothing it it’s provisions overrides a bank’s ability to follow those prudent lending practices.

TaxPayer

April 25th, 2012
10:07 am

AAPL recovered from its correction rather quickly.

USinUK

April 25th, 2012
10:07 am

“Because subprimes were 25% of the market, those perverse government-incentives pushed banks into a lot of rotten paper. Even without originating a single loan.”

exactly the opposite, Rags –

Banks (and other lending institutions) SOLD their loans — giving AAA ratings by S&P, the real culprits, by the way — to Goldman, Lehmans, and other investment banks …

AGAIN, NOTHING TO DO WITH THE CRA

JKL2

April 25th, 2012
10:09 am

finn- The Con mind is a difficult nut to crack.

Sorry we’re not all sheeple. Try your propoganda somewhere else.

Joseph

April 25th, 2012
10:09 am

getalife

April 25th, 2012
10:09 am

“Britain in double-dip recession…” drudgey

Austerity failed so the cons want that failure here too.

Doggone/GA

April 25th, 2012
10:10 am

“AGAIN, NOTHING TO DO WITH THE CRA”

And the first thing you know about someone who thinks CRA had anything to do with the housing crash is that they don’t know the difference between a regulation that controls WHO a bank lends to (not the CRA) and a regulation that controls WHERE lending must take place (the CRA)

Adam

April 25th, 2012
10:10 am

Have you ever used Google? Theres plenty of examples

Then I’m sure you will have no trouble continuing to show us all how Obama continues to do this, even more recently.

And yes, you fit within the 6 month timetable. Well done. You haven’t convinced me he is still using this line of attack though.

ragnar danneskjold

April 25th, 2012
10:10 am

Q: How many legs does a dog have if you define its tail as a leg?
Obama: Who cares, let’s eat!

USinUK

April 25th, 2012
10:10 am

(whew) … okay, I think that catches me up with the posts …

Finn McCool (Class Warfare === Stopping Rich People from TAKING MORE of OUR MONEY)

April 25th, 2012
10:10 am

So, Fannie and Freddie forced the ratings agencies to give those loan packages such sweet ratings?

Yah think?

Redneck Convert (R--and proud of it)

April 25th, 2012
10:11 am

It’s called a trailer. It don’t fall in value. The neighborhood don’t matter. If you decide to pick up and move, you just put the wheels on it and take it with you. You don’t even have to put your stuff in boxes when you move. Just park it wherever you want to live, hook it up, and you’re in business again.

Try it, you might could like it. And don’t put your hand out and try and use my taxes to get out from under your mortgage just because you were brainless enough to buy a house.

Have a good Hump Day everybody. And lotsa luck unloading that overpriced shack you bought when you thought you were too good to live in a trailer.

USinUK

April 25th, 2012
10:11 am

Finneus – EXACTLY …

Joseph

April 25th, 2012
10:11 am

Is there any economic indicators that prove Obama has made things better since assuming office?

Steve - USA (I support "None Of The Above")

April 25th, 2012
10:12 am

“Banks (and other lending institutions) SOLD their loans — giving AAA ratings by S&P, the real culprits, by the way — to Goldman, Lehmans, and other investment banks …

AGAIN, NOTHING TO DO WITH THE CRA”

True. It those loans were not falsely given AAA rating investors would not have purchased them and once that cash dried up the flow of new shaky loans would have been contained.

Joseph

April 25th, 2012
10:12 am

Its a simple question really….

USinUK

April 25th, 2012
10:13 am

Joseph – you mean like the GDP going from negative to positive???

that kind of indicator???

ragnar danneskjold

April 25th, 2012
10:13 am

Dear USinUK @ 10:07, you err – banks bought mortgage-backed securities, now wholly unmarketable, to satisfy their CRA requirements. It is also true that banks originated and sold mortgages to securitizers, and did some securitizing on their own, to satisfy their CRA requirements. CRA was far more insidious than you think.

Adam

April 25th, 2012
10:13 am

Joseph bids December 13, 2011:

President Obama Claims “We Didn’t Know How Bad It Was.” “President Barack Obama said Tuesday he wishes he knew the full extent of the economic crisis when he took office, if only so he could have let Americans know just how tough the coming years would be. ‘I think we understood that it was bad, but we didn’t know how bad it was,’ Obama said in an interview with KIRO in Seattle. ‘I think I could have prepared the American people for how bad this was going to be, had we had a sense of that.’” (Jennifer Epstein, “Barack Obama On Economic Crisis: ‘We Didn’t Know How Bad It Was,” Politico’s “44″, 12/13/11)

Joseph is still winning the game of finding the closest time to now that Obama blamed Bush for something. Anyone else have a higher bid?

(btw the one dated January 30, 2012 on the same page provided doesn’t count because it is an Obama adviser, not Obama himself)

Aquagirl

April 25th, 2012
10:13 am

Here’s a great ad Adam…..

An RNC ad?

BWAHAHAHAHAHA!

I tune in for my morning laugh and Joseph obliges in .002 seconds. That’s gotta be a new record.

getalife

April 25th, 2012
10:13 am

willard does nothing but lie because he knows the gop voters will not challenge his lies.

We will cons.

Doggone/GA

April 25th, 2012
10:13 am

“banks bought mortgage-backed securities, now wholly unmarketable, to satisfy their CRA requirements”

Don’t know much about the CRA do ya?

Lord Help Us

April 25th, 2012
10:14 am

‘Is there any economic indicators that prove Obama has made things better since assuming office?’

is you got google…

USinUK

April 25th, 2012
10:14 am

getalife – I posted that early this morning for the numpties who are all about government austerity during an economic crisis …

ragnar danneskjold

April 25th, 2012
10:14 am

Dear Finn @ 10:10, you look through the wrong end of the telescope. Because of the implicit taxpayer guarantees, the FNMA and FHLMC mortgage-backed securities were golden, even if they were rotten. Thanks, suckers, I mean taxpayers.

JamVet

April 25th, 2012
10:15 am

“A lot of us are plagued by bad choices…… if we just took responsibility for them and quit blaming someone else for our bad decisions, this life would be a whole lot better.”

Nonsense, 71.

Not if you are too big to fail. And blame, hell! How about giving you hundreds of BILLIONS of taxpayer dollars to make everything “OK” again?

Poor “cleaning” rags,

The man NEVER offers up any credible links, quotes, facts, evidence or data and then gets miffed when someone else does, which blows away his made up stories…

Zombie banks notwithstanding!

Adam

April 25th, 2012
10:15 am

Joseph: Is there any economic indicators that prove Obama has made things better since assuming office?

25 months of job growth counts I think. So does the DOW being around 13k.

By the way, if you’re going to argue he has nothing to do with those, then I’m saving it for the next time you decide to bring up gas prices (which you aren’t doing right NOW, since those prices are dropping and the right wing propaganda machine only brings that up when the prices move upwards).

Brosephus™

April 25th, 2012
10:15 am

USinner @ 10:03

I see you understand where I’m coming from.. :lol:

I see we’re on CRA the 13th #11; “Jason get’s foreclosed”

getalife

April 25th, 2012
10:15 am

willard’s big speech was a flop.

Flip flop.

USinUK

April 25th, 2012
10:16 am

“Don’t know much about the CRA do ya?”

nope – but that doesn’t seem to stop him spouting off about it …

Adam

April 25th, 2012
10:16 am

This contest is not just open to cons. Others can join in if they can find a closer time to now that Obama directly blamed Bush for something than Dec 13, 2011.

ragnar danneskjold

April 25th, 2012
10:19 am

My funniest personal experience was witnessing one of those zombie mortgage banks, broken by the lousy mortgage loans, getting reamed out by the CRA examiners for failing to serve their community – they ran out of cash and were unable to fund new loans, and the CRA examiners called that “failure to serve the community.” Hilarious, except to those who had worked so hard to please the CRA examiners by originating the rotten paper. (Had a “1″ rating for CRA before it went broke.) No good deed goes unpunished by the government (the true zombies in the calculus.)

Joe The Plumber Too

April 25th, 2012
10:20 am

Not bad news for me at all. My partner and I have picked up 4 foreclosed homes since the first of the year at about 25 cents on the dollar from existing neighborhood values. All rental properties with tenants now. While some people cry about the economy, others put money back into it for future income. We now have 14 rentals, all occupied and all fully paid for. Instead of crying over a situation, learn to make it work to your advantage people….that is the American way.

getalife

April 25th, 2012
10:20 am

USinUK,

I think willard will cut too much and we would be like Great Britain too.

Joseph

April 25th, 2012
10:20 am

Adam:

Ok so I proved you wrong. How about his surrogates doing his dirty work for him. There are numerous examples of this you would admit….

http://www.cbsnews.com/8301-503544_162-57410503-503544/obama-says-still-more-work-to-do-to-create-jobs/

Adam

April 25th, 2012
10:20 am

Also, can’t help but notice the following arguments have died:

Wealthy Envy
“Class warfare”
“There’s no War on Women”
Gas Prices

I wonder why people have suddenly stopped using those…..

ragnar danneskjold

April 25th, 2012
10:21 am

You dummies have never done a CRA examination – I have done dozens. I know how the game works, because I was there at the start.

Granny Godzilla - Union Thugette

April 25th, 2012
10:21 am

Bumper sticker

Mitt Romney
Pro Choice/Anti-Choice/Multiple Choice

Adam

April 25th, 2012
10:22 am

Joseph: Ok so I proved you wrong

When did I assert anything about the subject that would indicate I was “wrong” if you answered my question?

getalife

April 25th, 2012
10:22 am

Good luck selling them joe.

Lord Help Us

April 25th, 2012
10:22 am

‘Had a “1″ rating for CRA before it went broke’

Says the guy who blames the CRA…wow…

JamVet

April 25th, 2012
10:23 am

I think I get why the cons are writing so much long-ago repudiated, Cavuto (or is it Cavoodoo?) nonsense this morning.

It’s Arbor Day!

Go kill a tree cons; you’ll feel better…

Joseph

April 25th, 2012
10:23 am

Adam:

I don’t think so… Take a look at the facts…. There are 3 million less people in the workforce……… Did they simply disappear? It is a fact that unemployment is worse…. There no getting around that fact….

http://www.youtube.com/watch?v=Fn4vxOr4wQo

Ari

April 25th, 2012
10:23 am

Atlanta has the worst wages in relation to the cost of living in the entire nation.
It is reaping what it sowed.

getalife

April 25th, 2012
10:23 am

Vote willard to go back to the recession.

Brosephus™

April 25th, 2012
10:23 am

I wonder why people have suddenly stopped using those…..

Did somebody shake the Etch-A-Sketch already? :)

Joe The Plumber Too

April 25th, 2012
10:24 am

getalife….why would I want to sell them, they will be passed down in the family.

Atlanta

April 25th, 2012
10:25 am

Usinuk 10:01

Toilet training – my sewer system is still a work in progress. My original toilet training was non existent.

My mother was a train track. Very cold and steely.

My father was Decatur, that kicked my mother 10 miles west because she was too noisy.

Joseph

April 25th, 2012
10:25 am

Vote Hussein to continue the recession….

Lord Help Us

April 25th, 2012
10:25 am

‘Sources close to Newt Gingrich say he will end his bid for the GOP presidential nomination next week.’

Jon Stewart needs some love today…

ragnar danneskjold

April 25th, 2012
10:25 am

What you really need to know is the ranking within the agencies – the “real” bank examiners, safety and soundness examiners, hold compliance and CRA examiners in total contempt, because of the lack of analytical skills required to do those statutory examinations.

USinUK

April 25th, 2012
10:25 am

for someone who has done “dozens” of them, you know eff-all about the legislation in question.

Paul

April 25th, 2012
10:26 am

Okay, USinUK

You going to explain to these US-centric, it-only-happens-in-the-US-’cause-that’s-the-limit-of-my-vision bloggers how Fannie and Freddie managed to collapse the Irish housing market, or shall I?

Or will the umpteenth repeat still not get thru?

Lord Help Us

April 25th, 2012
10:26 am

‘Vote Hussein to continue the recession….’

Sigh..another easily debunked piece of BS…

Joseph

April 25th, 2012
10:27 am

Oblama

April 25th, 2012
10:27 am

The faster Oblama is out the faster the economy will recover. Oblama’s policies are killing the housing market and now he is talking about raising taxes again. Good news is recent polls say Oblama is losing popularity with young voters that realize their future is being mortgaged by the Oblama administration. No matter what Oblama tries to make it this election is about the economy, jobs and reducing the alarming Fed debt. Reality is Oblama has no real plan and no clue of how to reverse this economic disaster.

JohnnyReb

April 25th, 2012
10:27 am

To all those who think I blamed the poor for the housing crisis – wrong.

The poor had a hand in it by taking loans they could not pay, however, if you will review my posts I stated “greed” tookover. Greed fueled by government. I believe many poor people were victims of greed run amuck.

It was not only the poor, middle to the upper class bit off more than they could chew. They rolled the dice and lost. Now, everyone pays for it.

As to the metro area, I stand by my original post. Too many low income people moving to the area buying starter homes. BTW, that did not help with the traffic congestion either.

Joe The Plumber Too

April 25th, 2012
10:28 am

you all be nice to each other, gotta go recharge some EBTs.

Joseph

April 25th, 2012
10:28 am

Lord Help Us:

Easily proven if you watch the vid posted…

USinUK

April 25th, 2012
10:28 am

Ah, Atlanta, I think I see your problem …

you have separation anxiety combined with abandonment issues, scattered, covered and smothered with a deep neurosis brought about by the feeling that the rest of the state hates you despite being dependent upon your income.

Adam

April 25th, 2012
10:28 am

Lord Help Us

April 25th, 2012
10:28 am

‘Good news is recent polls say Oblama is losing popularity with young voters that realize their future is being mortgaged by the Oblama administration.’

Cons are on a roll today with easily debunked BS…Surely, you have more than this?

Joseph

April 25th, 2012
10:29 am

Can you libs point to an example of where Obama looked like a real leader?

Bruno

April 25th, 2012
10:30 am

That suggests pretty strongly that there is something unique to Atlanta playing out here. Part of that explanation has to be our failure to address issues of traffic, water, infrastructure, etc. Part of it also has to be the fact that the mode of development taken by metro Atlanta for the last quarter century is now out of fashion in the modern real-estate market.

Jay–Once again, you’ve started with a predetermined conclusion, then have tried to fit the data to match your own particular bias. While it looks like Mad Max, ragnar and JohnnyReb have adequately challenged your view by pointing to larger forces at work, I will simply point to the Law of Supply and Demand. Atlanta STILL isn’t the hardest hit market in the US. According to this link, Atlanta isn’t even in the top 5 worst markets:

http://realestate.yahoo.com/promo/americas-best-and-worst-housing-markets-2011.html

Lord Help Us

April 25th, 2012
10:30 am

‘Easily proven if you watch the vid posted…’

Easily debunked if you understand the meaning of the word recession…and realize we have not been in one for years.

Adam

April 25th, 2012
10:32 am

JohnnyReb: Greed fueled by government.

Incorrect. It was greed fueled by Wall Street, and their mortgage packaging schemes.

MiltonMan

April 25th, 2012
10:35 am

“Let’s face it….we have a good ole’ boy government, sad schools,
crappy transportation, water issues….

Plenty of reasons for transplants to just not be that into us.”

Let’s see: a new high school about to open for the 2012-2013 5 minutes from the house. A couple of new housing developments in the area. A new 14th district in north Georgia.

Love for you ostriches to visit Detroit, Newark, Cleveland & truly see what depressed areas look like.

Joseph

April 25th, 2012
10:35 am

Adam

April 25th, 2012
10:35 am

Can you libs point to an example of where Obama looked like a real leader?

http://www.youtube.com/watch?v=ZNYmK19-d0U
http://www.youtube.com/watch?v=PwgjYMw310U

Generation$crewed

April 25th, 2012
10:35 am

Adam,

http://www.rogerhedgecock.com/story/17592951/washington-times-obama-goes-back-to-2008-playbook-blame-bush

Do you have a point to all this?

Here is another helpful site…….

http://www.google.com

A box will appear near the middle in the top 1/4 of screen. Then type whatever you want to find. Any word u would like to know more about.

If you need any further help let us all know, we would be happy to help if you can’t figure out how it works

Jack

April 25th, 2012
10:35 am

No matter how you slice it, the real estate crash took place because builders were over-building to cash in on the liberal policies allowing banks or requiring banks to loan to those that had no intention of paying back the loans. Barney Frank certainly understood the human weakness that allowed this to happen: But political expediency was on his side.

JamVet

April 25th, 2012
10:35 am

Find me one – just one – Republican who holds the Wall Street banksters and casino capitalists, and their co-conspirators and handsomely rewarded servants in the GOP, even a tiny bit responsible for the attempted corporate destruction of capitalism and I’ll show you a RINO.

We’re creating… an ownership society in this country, where more Americans than ever will be able to open up their door where they live and say, welcome to my house, welcome to my piece of property. ~President George W. Bush, October 2004.

Welcome to the aftermath of the apocalyptic president…

Adam

April 25th, 2012
10:35 am

Easily debunked if you understand the meaning of the word recession…and realize we have not been in one for years.

Precisely.

JOE COOL~DoWnToWn THUG

April 25th, 2012
10:36 am

Polling numbers for you CONs:

Gallup 4/21 – 4/23 1500 A 50 44 +6
Rasmussen Reports 4/21 – 4/23 46 53 -7
NBC News/Wall St. Jrnl 49 46 +3
CBS News/NY Times 48 42 +6
Quinnipiac 4/11 – 4/17 2577 RV 47 48 -1
CNN/Opinion Research 49 48 +1
Reuters/Ipsos 49 49 Tie

Adam

April 25th, 2012
10:36 am

Granny Godzilla - Union Thugette

April 25th, 2012
10:36 am

Joseph

Well, he didn’t put you in the gulag on day 1 of his Presidency.

Doggone/GA

April 25th, 2012
10:37 am

“Can you libs point to an example of where Obama looked like a real leader?”

to meet YOUR standards? No.

USinUK

April 25th, 2012
10:37 am

“You going to explain to these US-centric, it-only-happens-in-the-US-’cause-that’s-the-limit-of-my-vision bloggers how Fannie and Freddie managed to collapse the Irish housing market, or shall I?”

I have found that if I DON’T start pounding my head against the brick wall in the first place, I don’t get the headaches …

so, bringing up the fact that the US and the REST of the world market investing in NON-Fanny / Freddie-backed mortgages (yes, Virginia, there WERE ABS securities that had NOTHING WHATSOEVER TO DO WITH FANNIE AND FREDDIE)

well …

I think it might make their heads a’splode

not that that would be a bad thing

Steve - USA (I support "None Of The Above")

April 25th, 2012
10:37 am

Bruno-

As much as it pains me to defend Jay :) I think his more comparison of major cities is more valid. The list you provided includes major cities, cities and small towns.

I don’t think you can equate Lehigh Acres, FL to Atlanta.

JMHO

zeke

April 25th, 2012
10:38 am

In the past it has been the agenda of those in city government and police to “alter” or “not report” true crime statistics!

Doggone/GA

April 25th, 2012
10:38 am

“on the liberal policies allowing banks or requiring banks to loan to those that had no intention of paying back the loans”

got any proof of that? Any at ALL?

Steve - USA (I support "None Of The Above")

April 25th, 2012
10:39 am

ugh…I have a mystery “more” in my post. Rats.

Atlanta

April 25th, 2012
10:39 am

Usinuk

Thanks for the psychoanalysis. Why is my job creation in the toilet? Midlife crisis?

Brosephus™

April 25th, 2012
10:39 am

Wow!!!! A topic on housing and it took 3 hours and 16 mins before Barney Frank’s name appeared. Seems like there is hope for change in this country. :lol: :lol:

yuzeyurbrane

April 25th, 2012
10:39 am

Now I know why we had all those multi-million dollar plus subdivisions with faux mega-mansions. None of the buyers could really afford them.

weetamoe

April 25th, 2012
10:39 am

I remember when then HUD czar Andrew Cuomo was trying to pressure credit unions to commit members’ savings to community *reinvestment* programs. For a while the threats were obvious, but the CU community fought back. It was also when the YK2 hysteria coincided with the *dot com* bubble to spread the wealth around before it all fell down. My oldest made a bundle while still in grad school and now owns free and clear a money pit in Atlanta—except for taxes, water bills, burglaries…

JamVet

April 25th, 2012
10:40 am

Good news is recent polls say Oblama is losing popularity with young voters…

LHU, to your point…

I think he may be correct.

The 18 – 34 year old vote is probably in danger – at the moment, but not in November – of going below two to one for Obama…

Adam

April 25th, 2012
10:41 am

GS: Yes, you can help by telling me what search term you used to finally arrive at that one, and then you can tell me, honestly, how long it took you to find it.

You win, by the way, since your bid is April 20. I am attempting to verify that the speech mentioned, but not cited, was on or around that date.

By the way, also, if you’re going to pretend to be intellectually superior, I would like to know your views on how you will bolster public education so that many others who cannot afford private school can also become as intellectually superior as you.

barking frog

April 25th, 2012
10:41 am

Deflation is tough when
it’s your property value
deflating.

JKL2

April 25th, 2012
10:42 am

obama does nothing but lie because he knows the Democrat voters and liberal media will not challenge his lies.

We will libs.

Joseph

April 25th, 2012
10:43 am

Can anyone say with a straight face that they are better off now than they were when Obama assumed the Presidency….

If YOU do not vote...then...

April 25th, 2012
10:44 am