GEORGIA - Atlanta's real estate market is in a tight spot. With one in every three housing units under foreclosure, inventory levels are low, and prices are rising. With the lack of homes for sale, buyers may be forced to rent instead. Because of the growing demand for rentals, prices will increase as more tenants move into urban neighborhoods.
Rising interest rates
Rising interest rates are one of the biggest factors impacting Atlanta's real estate market, but they don't have to be the only factor. Many buyers are willing to lower their expectations. Rising rates haven't slowed demand in the past, but they can also make buying a home more expensive.
Rising interest rates are also contributing to a more competitive market. Home prices are higher than they were two years ago, causing a steep drop in affordability. However, Atlanta real estate fundamentals are still solid. The number of starts and pending sales were relatively stable, and the supply chain is opening, which is positive. But the market may become more stratified, and buyers may need to apply more creative thinking to make the most of their investment.
Prices in Atlanta are still high, but rising interest rates will reduce their appeal. In Metro Atlanta, the median home price was $377,000 in March, up 20% from last year. Multiple offers, however, have not yet subsided.
The Atlanta, real estate market is expected to remain a seller's market into 2022. The housing supply is low, and the demand for homes is high. Interest rates have recently increased, but the market remains hot. With a large economy, Atlanta is desirable to buy a home.
The Atlanta real estate market is considered one of the hottest in the nation because of its affordable housing and the thriving job market. The Atlanta market is ranked as one of the best cities for job seekers and renters in 2022. Buying and selling real estate is easy and inexpensive with HoneyBricks, a platform that makes buying and selling real estate easy and enjoyable.
As Atlanta continues to grow, the price of real estate will also rise. The median price of a single-family home will increase by 20.3% in April 2022 compared to April 2021, and the median price of a single-family home is expected to increase by 20. As Atlanta's population grows, it will need to add more housing.
Demand for houses
The Atlanta, real estate market, has seen an unprecedented boom over the past two years, with prices skyrocketing to record highs. However, rising interest rates are now weighing on the market and inventory is dwindling. That means a tougher market for buyers in 2022.
As a result, demand for houses in Atlanta will continue to rise throughout the year. Atlanta remains one of the most sought-after places to live. It is the capital of Georgia and the economic heart of the state. The metro region contributes nearly 10% of the U.S. economy each year. Moreover, the Atlanta housing market is affordable and offers lucrative employment opportunities.
The Atlanta metro area is currently the tenth largest in the U.S. and is expected to rank among the top twenty cities worldwide by 2020. Even with the FED's recent rate cuts, the demand for houses in Atlanta is still high across the 11-county metropolitan area.
According to Emerson, 2022 will be a good year for prices in Atlanta real estate. Low-interest rates will help drive buyer demand. Atlanta's high growth and strong employment market will help fuel a strong housing market. Atlanta is expected to have a 30% share of investors by 2022.
Home prices are already high and rising. The median price is now $250,000, nearly 30% from last year. However, home sales are not keeping pace with rising prices, as the inventory of available houses is extremely low. As a result, people may decide to rent instead of buy. This will increase rent since more tenants will seek affordable housing in an urban area.
Prices in Atlanta are projected to increase at a slower pace than in 2021. However, the city's population growth and overall appeal will ensure that prices will rise above the national average.
The Atlanta, real estate market is expected to continue to grow in the years to come, with strong buyer demand and low-interest rates. This combination is expected to increase home prices and create a challenging environment for real estate agents. While the Atlanta real estate market remains hot, continued inventory shortages will have an effect on home prices.
According to a recent report, Atlanta's housing inventory was down between one and two months in January 2022. The number of homes on the market was 4.6% lower compared to January 2020. However, listings increased by 11.9% for three- and four-bedroom homes and 16.3% for five-bedroom homes. Despite the low inventory, many homes were sold above the asking price, allowing Atlanta homebuyers more choices.