Atlanta home prices rise for fifth straight month
In August, according to a new federal report, home prices in the Atlanta metro area rose for the fifth straight month. Unfortunately, this positive development was tampered with the less-promising news that, despite the increases, the Atlanta real estate market continues to be one of the worst in the country.
First, the good news. According to the Standard & Poor’s Case-Shiller Price Index report, Atlanta has now experienced five straight months of housing price gains. The five-month increase reversed the previous trend, during which home prices fell in the metro area for nine straight months from October 2011 to June 2012.
Analysts believe that this ongoing increase indicates that Atlanta is finally beginning to rebound from the housing bubble and subsequent burst that caused so many homes in and around the city to lose a significant percentage of their value during the economic recession.
Unfortunately, the bad news appears to be overshadowing the good. Standard & Poor reports that, despite the five-month increase, home prices in Atlanta were still down by more than 6 percent from August 2011.
This means that Atlanta is one of just three major U.S. metro areas where average home prices remain lower than they did in January 2000. The other two cities to receive that dubious honor are Detroit, Michigan, and Las Vegas, Nevada. Like Atlanta, those two cities have been hit extremely hard by the recession, struggling not only with depressed housing markets but also with unemployment rates above the national average.
Hopefully, the recent gains are indicative of the progress to come in the Atlanta housing market. We will continue to update our bankruptcy blog with any new developments.
Source: Atlanta Journal-Constitution, “Report: Atlanta home prices are up but still mired in slump,” Greg Bluestein, Oct. 30, 2012
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