|The Intown Atlanta market has definitely shifted from what felt like an all out war between buyers desperately competing to secure a home, to a more stable market much like 2019.
Some parts of the country that boomed are experiencing numerous price decreases, mostly on the West Coast (Boise, Seattle, and Salt Lake City for example) however, this hasn’t been the case in Atlanta. While inventory still remains low, demand has gone down drastically over the last three months, most notably because interest rates have practically doubled and continue to rise. Prices will most likely go up at a much slower pace into next year, but will not come down unless a massive amount of inventory comes available. I don’t expect to see a big rise in inventory, mostly because most people either bought or refinanced into a sub 4% rate and are reluctant to take on a much higher rate and monthly payment.
For Buyers: Although home affordability continues to be a struggle with buyers as monthly payments are much higher, there are more options to choose from and buyers who are looking to purchase now more likely can receive closing costs, retain their financing and inspection contingencies and most of all afford to be more patient in their search.
Mortgage rates will most likely continue to rise going into 2023, but should come back down to more palatable numbers in the 4.5-5.5% range for a 30-year mortgage next year. If buyers can comfortably afford their monthly payment, they should be able to refinance when rates come back down and take advantage of them, as experts and loan giants like Freddie Mac predict. Marry the house and date the rate: most importantly divorce your landlord.
For Sellers: Sellers now can’t expect to get multiple offers out of the first few days of listing (though depending on the neighborhood, price and quality of the home this is still the case), they need to get their home prepped well for selling (painting, staging, deep cleaning, etc) and most of all price realistically.
The market in Atlanta can be very different depending on your area, please reach out to me if you have any questions.