Wondering how the housing market in Atlanta has changed during the coronavirus crisis? If so, you need to read this article. Here we have mentioned the most important trends of the real estate market that you need to know. Let’s take a look. An Overview: How Did the Atlanta Real Estate Market Begin in 2021?
Wondering how the housing market in Atlanta has changed during the coronavirus crisis?
If so, you need to read this article. Here we have mentioned the most important trends of the real estate market that you need to know. Let’s take a look.
An Overview: How Did the Atlanta Real Estate Market Begin in 2021?
In January 2021, homes sales raised to 1.0% more than the previous year despite the COVID-19, having 4,421 sales. But while the sales increased, the housing market had seen a significant decline in the available inventory, which was decreased to 1.2 months supply in January. Besides that, the inventory of properties for sale in metro Atlanta cut down to 1.2 months. This was approximately 5 months lower than the amount considered balanced for the housing market in Atlanta.
The average home cost in metro Atlanta reached $390,000 in January 2021, which was 17.9% more than the last year. These factors will be responsible for putting upward pressure on property prices for the coming several months. Some experts also believe that Atlanta might see an incredible increase in home prices the next year. In fact, some forecast indicates a growth of 6.7% in 2021, which is more than the 5.7% increase nationally. Hence, these states show that metro Atlanta in the 20 markets may witness a significant increase in home prices.
Housing Market in Atlanta: Things You Need to Know
Here are few things that you need to know to understand the changes in the housing market in Atlanta after the COVID.
Increase in Rent Prices
You might not know, but rents are increasing in Atlanta. This is maybe because of the increased demand for houses. Not to mention, the rise in home prices is making it challenging for some people to invest in the properties. This has forced a great number of people to continue renting properties. In other words, it creates demand in the rental market, which leads to an increase in rent.
You should also know that construction expenses are higher due to the pandemic, predominately due to a rise in the lumber cost that limits the supply of homes. All these problems have pushed the rental prices even higher than before. The market is also seeing an increase in demand for single-family homes, which, again, is making the prices high since 49% of Atlanta’s population are families with at least one child.
Low Housing Supply
If you have any type of housing property in Atlanta, you are in the driver’s seat. This is an ideal time for people who have kept their houses to get the cash flow or to sell it while prices are high, as the demand is pretty high, but the supply is low.
Real estate investors who are ready to pay cash can get an excellent deal. However, they need to prepare for tough competition until things get changed. For instance, the competition will reduce if the market gets more supply to complete the demand or simply if the mortgage rates increase to lessen the demand.
High Median Home Prices
While the average home price in Atlanta has gone to its highest levels, it is still less than the country’s median price. On top of that, Atlanta has the best climate and many career opportunities, which will increase the home prices throughout 2021.
But even after the increase, the median home prices of the city will still stay low than the average home prices of the country.
In a nutshell, the housing market in Atlanta is seeing a continuous increase in both rents and home prices. This is because of the incredibly low supply of properties in the city due to COIVD. If the supply increases, which is not possible in the coming months, we can see the balance in the prices.
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