U.S home prices were up 10% year over year, in Atlanta, they were up 20% (data from FMLS)… From my first hand experience in the market, it seems like the rising prices have a lot to do with the influx of out of town buyers, from more expensive markets like California and New York, who are willing to pay more for properties.
I am eager to see how this trend of rising prices continues with interest rates rising. Historically, home prices and interest rates go hand in hand. Last Thursday, Freddie Mac announced their 30-year fixed mortgage rate was over 3% for the first time since July. That’s tough to hear if you’re buying or refi-ing, but keep in mind these are still historically the best interest rates – all signs point to a strong spring sales season. I don’t think we will see home prices going down in Atlanta, though that is just my opinion.
