Throughout 2011, the Atlanta housing market continued to have a high rate of foreclosures, adding downward pressure on home prices.
According to a real estate report from CoreLogic, Atlanta saw the significant drop in home prices last year, recording declines upwards of 9 percent. The national average saw prices fall by 4.7 percent, marking the fifth straight year of declines in the wake of the housing bubble burst.
"While overall prices declined by almost 5 percent in 2011, non-distressed prices showed only a small decrease," said CoreLogic chief economist Mark Fleming. "Until distressed sales in the market recede, we will see continued downward pressure on prices."
However, the drop in the price of homes for sale in Atlanta could be a positive indicator for entry-level homebuyers who previously found themselves locked out of the housing market at its peak.
Additionally, recent local economic reports indicate that the city's unemployment rate continues to improve as companies create more jobs in the local marketplace. As Atlanta-based households create more employment opportunities it could result in a drop in the city's mortgage default rate.
