Bubble Economics in Peachtree City?

The AJC raised some questions in the Aug. 31 article “Slowdown in Fayette a metro area exception.” The report failed to really dig in the right places and the piece had conflicting data: however, some interesting comments were made.

Figures used are 2005, comparisons 2004 to 2005.

Fact: New and existing home sales are down in Fayette County (1.8%) and significantly in Peachtree City (14.6%).

Fact: The median home sale prices in all of Fayette County are up (1.2%). Metro Atlanta median prices rose 3.9%.

Fact: New and existing home sales were up in Coweta County (10.9%) and median prices rose to $180,000.

Quote: “I think it’s [Fayette’s decline in home sales] mostly due to Coweta County, which has so much construction going on now. There are newer and less expensive homes going up there.” – Patrick Baumer of Keller Williams Reality in Peachtree City

Quote: “The sizes of homes you are buying on that road [Rockaway Road in Senoia] would cost $50,000 to $80,000 more in Peachtree City.” - Patrick Baumer of Keller Williams Reality

Quote: “Whatever is here [Peachtree City], if it’s in good shape, people are buying it. If not, it will sit on the market for a while.” – Mary Ann Seward of Harry Norman Realtors in Peachtree City

Is Peachtree City in the midst of a housing bubble that’s about to pop? With the explosive growth in Coweta along the Peachtree City border, could the “more home for the dollar factor” and increased traffic and commutes in Peachtree City cause a further backlash in home sales? What about and prices?

Traditionally, Coweta County has catered to the smaller home, lower price market. In contrast, the proposed TDK developments are larger homes and less expensive than comparable Peachtree City units. Could that combination lead to a hyper-construction phase in eastern Coweta County (Peachtree City style and location without Peachtree City prices)?

What does this mean for the future of Peachtree City and Fayette County? Traffic? Crime? Home prices?

Real Estate market here is strong.

Submitted by McDonoughDawg on Thu, 08/31/2006 - 2:52pm.

There was an overall reduction in number of homes sold, mainly because there were not nearly as many new homes on the market. The re-sale market between 200-400 is very strong. The homes that have been updated are in high demand.

Keep this in mind, there are some people who will not EVER consider buying anything but a new home. I think this is short-sighted, but not really the issue of this blog.

login to post comments

Home Bubble Future

Submitted by johenry on Thu, 08/31/2006 - 3:04pm.

But McDounghDawg, speak to the future impact of having large homes which are lower priced and plentiful on the other side of the border a la TDK. I would think that has got to flaten our sales/prices??

You are speaking in terms of "today" and I'm looking to the future.

login to post comments

Coweta isn't Fayette

Submitted by kimberlyinptc on Thu, 08/31/2006 - 3:33pm.

I know that 'good schools' mean nothing to some, such as senior citizens, but just look at the GA gradebook on school systems. Compare the Coweta & Fayette stats. Several years ago we considered moving to a new place in Senoia (twice the size, half the price kind of thing) but after checking out East Cowetan High, we decided against it. Also, we have our golf cart thing here that older folks love. If we can keep crime and overdevelopment down, PTC (imho) would always win out over Coweta. Of course, there will always be people that will choose new construction...hope our bubble doesn't pop.

login to post comments