Foreclosure in Georgia’s high-end housing market
Although the economic recession and its lingering effects have had a negative effect on people in all economic classes, data appears to indicate that poorer people are experiencing greater difficulty in recovering from the recession. For example, while the slump in high-end home sales has been low in recent months and years, it has not been nearly as low as the plummeting sales figures for average-priced homes.
In 2007, approximately 800 homes priced at $1 million or greater were sold each month in eight Georgia counties. Today, about half as many homes are sold in those counties on a monthly basis. In addition, the foreclosure rate among high-end homes costing $1 million or more is currently around 6 percent, while the foreclosure rate for average-priced homes is around 38 percent.
Recently, the former Buckhead home of the owner of the Atlanta Falcons was listed for sale at $8 million, but sold three years later for $3.6 million, less than half of the original listing price. In another example, a 47,000-square-foot mansion situated on 72 acres in Forsyth County was listed at $45 million, but recently sold for a staggering $9.5 million.
The current climate is great for buyers, but not so good for sellers. According to a spokeswoman for Sotheby’s International Realty, buyers know they have the time to browse several homes without having to beat the crowd. This makes selling more difficult, but, she says, the tides are turning. Buyers are growing impatient to own their dream house, and taking advantage of the current historically low interest rates.
Source: Atlanta Journal-Constitution, “Million-dollar homes sell – at a slower pace,” Christopher Quinn, Nov. 2, 2011