Atlanta Real Estate Market 2016 Predictions

Last year saw yet another record increase in terms of median price increase, a whopping 7.4% for metro Atlanta! (Typically it’s only about 3% every year). The cause of this was an economy that although very fragile was as strong as it’s been in the past 8 or so years and low inventory.

Ultimately, new construction started again last year and all was right in the real estate world. What you might not notice is that we’ve been saying this very same thing for 5 years! Here’s a review:

• Prices are low but increasing
• The interest is so low that affordability is very good
• Rent rates are also rising

So what’s changed – nothing really except rates did go up for the first time in a LOOONG time relatively speaking.   Nationally the story is the same!

Atlanta Real Estate Market 2016 Predictions

Right now the inventory of housing is very low. This is causing many would-be sellers to sit on the sidelines because they are afraid that they can’t find another home to move into. So their home sits unlisted. Meanwhile the buyers for their home are thinking the same thing. Something has to give one way or another.

New construction seems primed to take advantage of this by putting a little bit more inventory on the market. The hottest neighborhoods for Atlanta new construction are the ones where there are leftover lots. In fact, there’s very few true “new developments.” This bodes well for those home sellers that have homes in these neighborhoods where the builder is selling homes at a significant increase. However, home sellers in neighborhoods where the builder is builder homes less expensive then the surroundings are going to have to wait it out.

Atlanta Home Selling Seasons

A few years back I talked about how the absolute best time to list your home in Georgia was the 2nd half of February. This has become true yet again. These last two weeks represent a time when buyers are looking and there simply isn’t enough inventory. What happens March 1st? Listing volume increases. In fact, if you see the graph you can see inventory increase substantially from March to April. In addition, when you look at the highest prices that sellers are able to net it often occurs in two spots. The dead heat of summer and you guessed it, about 45 days after February or rather April.

Final Thoughts On 2016

The Atlanta market still has pent up demand from 1st time home buyers as well as move up buyers. With low inventory levels, Atlanta may very well be insulated from a national housing market shift, at least in the short term. However, if I were an unintentional investor and had a rental that I didn’t want, it’s time to sell. If I wanted to move up, now’s the time. I think we’ll look back at 2016, an election year, and see that it was a peak of sorts.

Takeaways

Buyers – The cost of waiting to purchase a home in this period is about $18K a year in the Atlanta Market (on average)!
Sellers – The real estate market is cyclical, and we’re up for 5 years. Do you want to predict the peak or capitalize on this run-up

Related Real Estate Resources:

• Atlanta Short Sale
• New Homes For Sale in Atlanta
• HOA Are Unforeseen Hurdles To Buying A Home