The hard-hit metro area housing market of the last several years has left many potential buyers wary of putting a large chunk of their nest egg into a building. While parts of the homebuying process, such as qualifying for a loan and saving for a down payment, can be challenging, the good news is that the market is bouncing back with lower home prices and historically low mortgage rates that make it a good time to buy.
“It’s an incredible opportunity for financially savvy people of all ages to get into the market,” said Marc Takacs, a realtor with Keller-Williams Midtown Atlanta. “It’s not so much the price of the home that will give you the bang for the buck; it’s the interest rate. If you can lock in below 4 percent, you’ll be in a much better position for the next 30 years.”
Along with favorable rates, the metro area has affordable new and existing homes priced below $225,000. That threshold often attracts first-time buyers looking to get a toehold in the market. But it’s also appealing to empty nesters looking to shed the big family house for something more manageable. In the Atlanta area, several builders are constructing communities that meet both specifications.
Michelle Graves, sales director for the Marketing Directors, a real estate firm that specializes in multi-family units, said her firm is seeing brisk condo sales. They’ve had particular success at the 5300 Lofts in Chamblee, a gated community where 242 one-level plans are priced from $60,000s to $130,000s and are outfitted with granite counters, hardwood floors and Juliette balconies.
“With interest rates low and condominium prices adjusted, you can get so much more home for the money right now,” she said. “There’s also a misconception that people won’t qualify, but at a lower price point, many more people can.”
Graves fields questions from buyers about what many see as the scariest part of buying a condo: the monthly homeowners fees.
“Primarily, there’s the misconception that condos have astronomical [homeowner] dues, but if you factor in the amenities you get, such as the exterior maintenance and some utilities, they can be less expensive than owning a home,” she said.
Josh Hilscher, vice president of sales and marketing for Traton Homes, says his firm sees a bright future for new, single-family houses priced below $225,000. Traton is building at Rosewood Park in Paulding County, where 14 floor plans start at $188,000. Houses have between 2,100 and 3,000 square feet with brick, cedar shake and stone accents and front and rear yards. Interiors feature three to five bedrooms, granite counters, stainless steel appliances, hardwood floors and maple cabinets.
“This neighborhood is selling two to four houses a month, mostly to first-time buyers who are deciding it’s a good time to buy,” said Hilscher. “They’re taking advantage of the current interest rates. And by going just a little bit father than the more expensive Cobb, they can get a fantastic deal on a house.”
Both first-time buyers and downsizers are picking out plans at Acworth Landing, a 32-home enclave in northwest Cobb County. The 3-bedroom, 2.5-bath designs have 1,750 to 2,000 square feet and are priced from $134,900. Standard features include hardwood entries, Formica counters and vinyl floors in the kitchen, dual air conditioning systems and two-car garages.
“We have a long list of options that give people the opportunity to pick and choose what they want,” said sales agent Priscilla Cox. “And through the end of September, we’re adding miniblinds, side-by-side refrigerators and top-loading washers and dryers. These are great buys on a small, manageable lots that back up to protected green space.”
Builders with Acadia Homes & Neighborhoods have three communities where new homes start below $200,000. Parkside Village in Cumming has 32 houses from the $160s; City Park Townhomes in Midtown features 27 four-story plans from $184,000; and Liberty Crossing in Braselton is in the final stages of homes from the $140,000s.
“Liberty Crossing is specifically designed for first-time buyers, but it also appeals to anyone who thought they couldn’t afford to buy,” said Sam Bass, Acadia’s vice president of sales and marketing. “It’s been so successful that by the first of the year, we’ll have about five communities with these plans.”
Liberty plans have four or five bedrooms, 2.5 or 3.5 baths, Craftsman-style elevations, granite kitchen counters and hardwood foyers.
“We can’t put in a lot of features, but these are good-quality houses,” said Bass. “They’re great for the person who’s renting and is ready to get into something new.”
Though many affordably-priced homes are dotted around the suburbs, buyers on a budget don’t need to go outside the Perimeter to find a deal, said Takacs.
“East Atlanta Village, East Lake, the west side of Midtown and the southern neighborhoods have very affordable single-family homes,” he said. “The average will have three bedrooms and two baths and will be pretty nice - not something you need to take a $50,000 rehab loan on.”
Takacs also points to the city’s northwest neighborhoods, Kirkwood, Edgewood, Old Fourth Ward and Reynoldstown as communities where older, affordable home are being refurbished.
“Old Fourth Ward is very hot for first-time buyers, singles and couples because there are a lot of bars, restaurants and parks you can walk to,” he said. “Right now, that’s really driving a large portion of the market.”
Intown also is home to a wealth of condos and townhouses, both new and historic. Midtown has long been a magnet for condo buyers who can find affordable re-sales in buildings with plenty of amenities, such as pools, gyms, media rooms and secured parking. But no matter what type of housing a buyer prefers, they’ll find properties priced under $225,000 across the metro area.
“All of Atlanta has suffered in this economy,” said Bass. “But we do believe there is a good market for buyers in pockets all around the city.”
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