Atlanta Home Prices: Relatively Small Decline
In a recent interview, Princeton economist Paul Krugman spoke with Fortune's Jia Lynn Yang about the economy and the outlook for home prices in which he specifically mentions the Atlanta market. See what he has to say.
How far do you think home prices will fall?
My preferred metric is the ratio of home prices to rental rates. By that measure, average home prices nationally got way too high. We'll probably basically retrace all that. So that's about a 25% decline in overall home prices. Only a fraction of that's happened so far. Of course, it varies a lot. In places like Houston or Atlanta, where home prices have not risen much compared with underlying rents, the decline will be relatively small. In places like Miami or Los Angeles, you could be looking at 40% or 50% declines.
Article: How bad is the mortgage crisis going to get?
Related Post: Buy a home in Atlanta: Make over $40,000 in 4 Years
How far do you think home prices will fall?
My preferred metric is the ratio of home prices to rental rates. By that measure, average home prices nationally got way too high. We'll probably basically retrace all that. So that's about a 25% decline in overall home prices. Only a fraction of that's happened so far. Of course, it varies a lot. In places like Houston or Atlanta, where home prices have not risen much compared with underlying rents, the decline will be relatively small. In places like Miami or Los Angeles, you could be looking at 40% or 50% declines.
Article: How bad is the mortgage crisis going to get?
Related Post: Buy a home in Atlanta: Make over $40,000 in 4 Years
Labels: atlanta, atlanta home prices, atlanta real estate market, home buyers, home selling, homeowners, mortgage crisis
posted by Quentin Wilson at
8:11 AM
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