In Atlanta, Developers Destroy Hopes of Recovery
The Wall Street journal recently reported the Atlanta Real Estate market is suffering from that oft-repeated term that has come to define our current ecnonomy: "irrational excuberance".
They site a 1 mile section of Buckhead Real Estate as a prime example of an emerging trend in the United States commercial real estate sector. A trend that stands as an obstacle to economic recovery.
According to the article, several prominent Atlanta developers are in the process of constructing 4 new office buildings in Buckhead. Now, that alone is not a speculative act, but add to this scenario that there is currently little demand for office space and you've got a recipe for disaster. It's this same reckless builder activity perpetuated by the likes of Novaire and other condo developers in our city that helped push our inventory to a near 40 year supply at the current sales pace and has littered our market with fire sale prices.
"If you build it, they will come."
It's was this silly mantra - a backwards interpretation of simple supply-demand mechanisms - that got us into this mess in the first place. And for nearly a decade lenders, developers and investors have fueled an irrational, greedy and thoughtless push for profit.
Don't they know the party is over?
What do the realtors say, "now is the best time to buy!"
We are broke personally and as a country. We are so screwed!
Come on America! Pull yourself up by your bootstraps! Our forefathers did it! What's wrong? Gotten a bit lazy? Go volunteer, get networking, send resumes, go back to school, paint your house, go see a Braves game...DO SOMETHING!!! There is still plenty of money and a great deal of opportunity out there!! GO GET IT!!! And remember to love your neighbor along the way!! ENJOY YOUR FREEDOM!!
I agree with Jim here. I think it's important to focus on what we can be doing within our neighborhoods, communities and cities to help each other through this recession. Whether it be getting together to clean up the yard of the foreclosure down the street or simply volunteering to serve at a homeless shelter. If you've lost your job or know someone who has - reach on the many social networks like facebook, linkedin or myspace. Start a blog to raise awareness of an issue you care about. Anything is better than nothing. As for now being a good time to buy real estate? Well...that really depends on your specific situation. Real Estate is more affordable today than it has been in years and I think it can really be a great decision for someone if they buy "smart" and stay within their budget.
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