Atlanta, GA has long been considered a major commercial and cultural center for the Southern states, but the usually thriving luxury real estate market stagnated after the Great Recession.
This month, however, Atlanta Business Chronicle is reporting that Atlanta is now in eighth place on the Coldwell Banker Luxury Market Report for the highest number of luxury home listings with values of $1 million and up. The city also placed 19th for the city with the most luxury home sales closed from July 1, 2013 – June 30, 2014.
The data, released by the Coldwell Banker Luxury Market Report, signals the recovery of Atlanta’s luxury real estate market in terms of homes sold and selling prices.
The report also discovered that luxury homes in Buckhead’s 30305 zip code have surged in popularity. In the second quarter of 2014, homes in the area priced over $1 million tripled the numbers recorded in the same period of 2013. Prices are up 27% from the past two years and 5% from last year.
Similar interest in luxury homes was reported in East Cobb, Dunwoody, Sandy Springs and Alpharetta.
“We are seeing dramatic growth in luxury home interest and sales in the Atlanta market,” says Erik Cocks-Marketing Manager at Arthur Rutenberg Homes. “For us, the growth in new construction of custom luxury homes in Atlanta doesn’t surprise us as the economy continues to improve, because when buyers are spending in the higher end range, they are less likely to compromise on the features they want, location and quality.”
“At one point, Atlanta was probably the second-worst market in the country behind Phoenix,” Charlotte Sears, president of Coldwell Banker Residential Brokerage in Atlanta, said in a statement. “But that’s changed, and now we are seeing multiple offers come in on many of our properties.”
She added that “we knew we were headed for a nice recovery when we saw people who owned million-dollar homes put them on the market. Sellers wanted to get on with their lives and buyers were looking for a good bargain, and since prices hadn’t fully recovered, it made for really good buys.”
The depressed prices attracted investors who bought and flipped homes, increasing market activity and reducing inventory. This allowed prices to climb back to the pre-recession standard.
The luxury home market is looking good in the rest of the states as well. A report released by Realtor.com in September revealed that luxury homes are selling 30% faster and are on the market for an average 50 days shorter than medium-priced, average homes.