Real estate economics is the study of the economics of real estate markets. It tries to predict patterns in demand and supply, as well as patterns in price and supply, and to describe these patterns. Atlanta has been seeing rapid growth in the housing market over the past few years. The city has seen an increase in home prices, as well as a rise in the number of homes available for sale. This has made more people want to live in their own homes, and this trend is likely to continue over the next few years.
Atlanta home prices continue to gain traction
Atlanta home prices are on the upswing. Home prices in Atlanta have more than doubled over the past two years.
A strong economy, job growth, and population increases make the Atlanta area a thriving place to live. The area is also one of the most affordable in the U.S. As a result, it’s a great choice for buyers.
In addition to being an economically strong region, the Atlanta area has plenty of things to do. It boasts a vibrant culture, and tree-lined neighborhoods, and is known for its urban walkability.
Home prices in the metro area are expected to continue to grow. For example, Zillow has forecasted that the average price of a house in Atlanta will increase by 2.6% between October 2022 and October 2023.
While home prices in Atlanta continue to rise, the housing market is not yet a seller’s market. Inventory is down 16% this year, but if it keeps this pace, it will likely be less so in the months to come.
Existing-home sales in the South
Existing-home sales in the South fell 7.1 percent in October, according to the National Association of Realtors (NAR). Although some of this decline is attributed to the impact of Hurricane Harvey in Texas, it remains the region’s biggest decrease of the year.
The NAR reports that home prices increased 7.7 percent from a year earlier. However, it notes that this was the first month in which the median price of an existing home exceeded $220,400.
On a seasonally adjusted annual basis, the number of existing homes for sale is still 5.4 percent above the same time in 2016. As of the end of April, the housing inventory was 3.2 months of supply.
Sales are down from the previous month, however, the sales pace is still the third highest on record. A low supply of affordable homes is keeping sales from picking up. It’s also a factor in increasing mortgage rates.
Year-over-year sales dropped in all four regions. In the Northeast, the existing-home sales rate was down 28.4 percent, while the Midwest saw a 30.6 percent decline. For the West, the existing-home sales rate dropped 12.5 percent.
Incentives to attract buyers in December
It’s time to do a bit of shopping for the next big thing and to do so while saving yourself a few bucks along the way. Luckily, you don’t have to wait until after the holidays to get great deals on the latest and greatest. Rather, take advantage of the many retail stores and e-tailers that open their doors on the morning of Thanksgiving and the evening of Black Friday. The trick is to find the perfect match for your shopping criteria.
Several local businesses have put their best foot forward by running promotions in conjunction with the big day. For instance, one company rolled out a limited edition commemorative bottle of whiskey on December 21, and another offered a free ride home with every purchase. On the flip side, a few companies decided to do away with a traditional retail location altogether, opting for a virtual storefront online.
A better choice would have been to enlist the help of a real estate professional. Not only can a broker assist you in your search, but they can also point you in the right direction when it comes to savvy homebuying.
Millennials value the flexibility of renting instead of buying
According to Apartment List, the rental market is becoming a popular option for millennials. In fact, almost three-quarters of them prefer to rent than to buy. However, the survey also revealed that many millennials are not in a financial position to afford a home.
This is largely due to the high student loan debt that many millennials are saddled with. As a result, they’re delaying marriage, having children, and buying homes. Some millennials, like management consultant Julia Hensel, are planning to buy homes someday.
But some millennials simply don’t want to be part of the ownership society. They want the flexibility to move around. It’s easier for them to transfer jobs and find a new city when they’re renting.
Another reason that millennials are opting for a rented home rather than buying is the cost. Many young adults are struggling to save for a house, which can be difficult in a rising rent economy. A home is also expensive to sell.