Many homeowners, investors, and real estate agents have this question in mind – how is the rest of 2020 going to shape out for the real estate market in Atlanta, GA. Atlanta is an incredible city driven by a booming economy, an influx of young, diverse professional and vibrant culture – with the recent pandemic the world is facing with the feared COVID-19 virus, the real estate industry isn’t the only thing up in the air.
Atlanta Real Estate Prices Will Appreciate
At the beginning of 2020, the Atlanta housing market forecast is predicting a positive trend. The values of homes for sale in Atlanta, GA were expected to see a 2 – 3% appreciation in 2020, meaning that the prices of homes for sale in Atlanta, GA were to increase more than the average in the US housing market. The average sales price in metro Atlanta has seen a 6% rise from last year’s $317,000 to $336,000 in January 2020. This is according to industry group Atlanta REALTORS Association. With the supply of houses for sale at only 2 or 3 months, home prices are expected to rise throughout 2020.
Strong Seller’s Market
The inventory shortage lives on as there are still more buyers out there looking for homes than there are available homes in the market. This means that demand for housing is high and supply is on the low. According to the latest Georgia Multiple Listing Service (GAMLS) statistics, the actual number of homes sold in February 2020 rose to 6,283 from 5,765 units in February 2019. Additionally, the actual number of homes currently for sale stands at 18,163 as compared to last year’s 19,178.
Fewer homes for sale eventually translates to rising property values and fierce competition among home buyers and iBuyers. With increasing buyer demand and low inventory levels, now is the perfect time to sell your home in Atlanta for the highest dollar and the least hassle. You hold a lot of cards as a seller right now.
Lower Mortgage Rates
Homebuyers using a mortgage loan are keener on taking advantage of the historically low mortgage rates. According to Freddie Mac, the average 30-year rate in 2019 was 3.94%. Currently, the rate has dropped to 3.72%. An affordable mortgage rate is great news for home sellers in the greater metropolitan area as it not only fuels buyer demand but also presents the opportunity to lock in a potentially reduced rate for the next home.
Experts have predicted that mortgage rates could gradually rise in the foreseeable future. A sense of urgency might be warranted for Atlanta homebuyers who seek to lock down a lower rate before it gets worse.
Economic and Labor Conditions
Current economic and labor conditions around the Atlanta metro area have been mostly favorable and will likely help fuel housing demand towards the end of 2020. The working-class flock to Atlanta for steady employment and corporations move here for the educated workforce, therefore, it’s not difficult to see why the metro area has become one of the hottest residential and labor markets in the country.
New Buyers Are Still Entering the Market
More and more first-time buyers are slowly stepping into the housing market. According to the Census Bureau, there has been a rise in the homeownership rate among the younger adults (individuals under 35.) This shows that owning homes is becoming essential for millennials as they get closer to starting families.
With every passing month, your home is likely to face a little more competition from other homes that would be vying for buyers’ attention on the market. If you’re on the fence about selling this year due to whatever circumstance, it’s better to sell in an environment that provides less uncertainty and also less physical person-to-person contact. There’s no telling what the rest of 2020 holds, but if you’re looking to sell your home in Atlanta, leaning towards an all cash offer from an iBuyer company may be in your best interest.