Home prices in metro Atlanta fell despite the drop in foreclosed homes for sale in Atlanta, GA figures.
The Standard & Poor’s/Case-Shiller index for Greater Atlanta showed that home prices in the area dropped by 0.9 percent in February from price levels one year ago. Prices also dropped month-over-month, posting a 1.5-percent drop between December and January and posting a 1.3-percent drop between January and February.
Analysts contended that prices did not improve despite the 24-percent slowdown in metro foreclosure activity because the resulting foreclosure numbers were still relatively high. The total number of foreclosures posted for the April public auction in Greater Atlanta, which reached 9,494 units, was still high compared to filings in other large metro areas.
In contrast to the reduced foreclosed homes for sale in Atlanta, GA in April, the number of Georgia foreclosure homes jumped up in the first quarter by almost 40 percent, putting the state sixth on foreclosure charts in March and seventh on foreclosure charts in the first quarter. The state rankings meant three and two places up on the charts from the ninth ranking of the state in February.
Overall, 13,607 homes were bought back by lenders in the first quarter, including over 4,500 units repossessed in January, 3,714 units repossessed in February and 5,351 units taken back by lenders in March. For investors looking for foreclosure homes for sale, the nearly 14,000 REOs added to foreclosure inventories in Georgia in the first three months mean more chances of buying lower-priced units.
Nearly 40,000 homes were put into distressed situations in the first quarter, including over 11,200 units in January, 12,177 units in February and 17,779 units in March.
In a home affordability study based on 2006-2008 median income and median house value data from the U.S. Census Bureau, metro Atlanta was ranked low in housing affordability. Atlanta posted a ratio of $3,229, higher than the affordability ratios of other cities in Georgia, like Albany, which posted $2,637; Augusta, which posted $2,615; and Columbus, which posted $2,984.
But since home prices have dropped in the first three months this year compared to the previous year and previous months, housing affordability levels in the area are expected to improve.
The still relatively high digit of foreclosed homes for sale in Atlanta, GA is also expected to rev up investment efforts in foreclosures in Greater Atlanta.
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