Common question I receive daily:
Is the Atlanta housing market crashing? Should I wait to buy a home to see if housing prices decrease?
My thoughts? You may be waiting awhile if you’re waiting for housing prices to decrease. In most other previous economic downturns, home prices continued to appreciate at an even pace. The exception to this of course is the 2008 Recession. The difference there? That recession was largely driven by the housing boom that preceded it + loose lending restrictions. Significant job loss paired with homeowners who had little to no equity in their homes was a recipe for disaster. That is not our current situation.
While Atlanta home prices have been rising year over year, it’s based on supply and demand. The demand for housing remains strong. Homeowners have equity due to tightened lending requirements as a result of the 2008 crash. If job loss occurs, homeowners are likely to downsize to another, less expensive home as opposed to an apartment or rental home (as rental prices in the metro Atlanta area are at an all time high).
Bottom line: people still need to move. Job transfer, marriage, divorce, death, birth…all of these things keep people moving. I predict the Atlanta housing market will remain strong once COVID-19 is under control and life resumes to (mostly) normal. I predict the late summer market will BOOM since the typical strong spring market won’t happen this year.
Takeaways: if you’re looking for a deal…NOW is the time. Rates are stable/low. Homeowners or builders currently trying to sell in this environment are MOTIVATED. Waiting until later summer or fall could leave you in a highly-competitive environment. Think high demand, multiple offer scenarios and bidding wars.
As always, The Blair Sells Team is here to guide you and help you make the best real estate move for YOU! Feel free to message any questions!