Yes prices are still rising. The residential market is continuing to stay hot, there is far too much demand for our current and projected future supply.
In short, a few of these housing trends carrying over from the beginning of this year include:
- Significant slowing in sales activity
- Housing inventory remaining low
- Housing affordability at all time lows
- Atlanta population growing rapidly
Slowing in Sales Activity/Interest Rates: This slowing trend is due to a number of factors, mostly the interest rates for 30 year loans continuing to trend at and above seven to eight percent (7-8%), constraining active buyers’ spending ability, as well as would-be buyers either remaining on the sidelines to wait it out, or simply priced out of the buying market and continuing to rent.
Housing Inventory: The existing housing inventory is still limited, though sellers still have the record levels of equity in their homes, the equity is trapped. We are still experiencing multiple offers on sought after properties, just under half of all new listings in Metro are getting multiple offers and selling over list price, with the most sought after price points in the $300-650,000 range. On the same side of the coin, properties that have not garnered as much attention present opportunities for buyers to get discounts, whether it be list price, closing costs, rate buy downs and more. I’ve seen more deals in the last few months than I have in the last couple years.
Seasonality and Pricing: There has been a very solid but gradual slowdown we are experiencing in activity, with the above market factors coupled with seasonality, school starting and this insane heat (when will it stop!?), but I anticipate now labor day has passed we will have more buyers progress into the market, but by the second quarter of next year, it will be a feeding frenzy when rates drop.
I’m here to help guide you through this market, whether you are selling, investing, buying or seeking property management.
I’d love to hear from you and hope you have a great day, reply to this email or reach me anytime at 678-337-2227.