The Atlanta Housing Market in 2019
Overall, it was a seller’s market in the greater Atlanta metro area in 2019. Supply remained tight and prices continued their upward trend. Job growth remained strong, and young professionals continue to move to Atlanta, but wage increases aren’t keeping up with the rise in home prices. Closings were down, suggesting that affordability for first-time homebuyers remained an issue, but fortunately, mortgage interest rates remained low. Pending sales increased toward the year’s end. Higher-end homes may stay on the market longer, while lower-priced homes in popular neighborhoods may see potential buyers bidding against one another.
It’s Still About Location
The Atlanta housing market in 2019 was more of a mixed bag than you might think. Prices increased in the greater Atlanta area at a steeper clip than nationally, but in some neighborhoods prices actually declined. Other are still bouncing back from the bubble burst during the financial crisis, and show both strong appreciation and affordable prices. If you’re a homeowner in the Atlanta Metro area thinking of listing your house, it pays to get the advice of an expert. A real estate professional will research your home’s micro-market—between streets and school districts—and price your home appropriately to make the most for you as a seller, all while minimizing time on the market. For the best home selling services in Atlanta, look no further than Excalibur Homes.
Prices Still Lower than the National Average
Despite continuing price gains, real estate in Atlanta remains affordable against the national average. After heating up for a few years, the market appears poised for a shift in the buyer’s favor. Closings are down, and with each passing day, sellers become more motivated. It doesn’t mean accepting a lowball offer—just maintaining a realistic perspective about a fair price for your home. Analysts say that prices will continue to rise, but not at the same steady pace as in the past few years. Inventory shows signs of increasing, giving buyers more homes to choose from.
Rates Could Be the Deciding Factor
Rates played a big part in the Atlanta housing market in 2019. Recent shifts in demand have much to do with continued low mortgage rates. As long as rates stay low, buyers can absorb some price increases. Forecasts suggest rates will remain low through 2020, but supply will remain tight, pushing millennial first-time homebuyers farther out of expensive major metro areas. This could be good news for smaller towns beyond the big city boundaries, as long as they have good transportation, schools, and amenities. There’s even a name for these trending smaller suburban communities: “hipsturbia.” Towns that capitalize on the ability to offer a combination of living, working, and city-style recreation in a smaller, more affordable location will benefit from this trend.
Home Builders Confident but Stalled
Growing demand has home builders feeling confident, but housing starts don’t reflect this. Costs are high, labor is scarce, and builders are still cautious years after the financial crisis. Prices for materials and land remain high. When demand is high and supply low, builders can be choosy about where and how many homes to build.
If you’re ready to take the next step into the housing market, look no further than Excalibur Homes. Buy your next rental house with us and your first leasing fee is free! Click here for more information.