Since the beginning of the COVID-19 pandemic, real estate markets are changing rapidly across the United States. If you are interested in the Atlanta real estate market as a real estate agent, buyer, or seller, there are several trends you need to follow right now.
A Heated Market Stabilizes
In October 2021, the Atlanta Journal-Constitution reported that although the year-over-year increase in house prices was 17%, the price of homes had remained stable throughout the summer. So what was quite a heated market at the beginning of the pandemic is stabilizing over increased prices and weaker buyer demand.
Forecasted trends include a 24% home value increase and a steady, if slower, increase in the market price of homes.
Low Supply, High Demand
The pandemic has changed the known natural cycle of real estate in the area. Typically, buying interest increases in the spring and drops in the fall, to go with families moving before the beginning of the school year. But since 2020, demand has remained high no matter the time of year. Supply is 18% lower than at the same time in 2020, indicating a crunch in the available number of homes for sale.
This creates another problem. Those looking to sell are concerned there may be nowhere for them to go, making them reluctant to list their property. This also puts downward pressure on available stock.
Challenges for First-Time Buyers
In such an environment, first-time buyers are having difficulty entering the market. Atlanta Magazine interviewed three buyers who faced dozens of competing offers, often in cash. The prices they ended up paying were also significantly higher than what they had budgeted.
This market has forced many buyers to spend more money or to live in less desirable areas or further away than they had planned. This situation makes it difficult for real estate agents to do their job to the best of their abilities. They sometimes have no choice but to recommend things that are above a buyer's budget or outside their desired area.
A Strong Business Environment Attracts More People
According to a Norada Real Estate Investments report, Georgia ranks as one of the best states to do business. This situation attracts businesses and corporations, who attract employees. Atlanta is still relatively affordable compared to similar cities across the United States and attracts a large part of these businesses. This also puts downward pressure on housing stock all over the Atlanta metro area.
Georgia is also seeing notable increases in several other markets, including Winder, Temple, and Jonesboro.
The Luxury Market Is Especially Hot
Reporting from What Now Atlanta mentions that the biggest increases in sales happened at the higher end of the market, in homes listed at $1 million and above. Many people looking for larger homes farther away from neighbors (thanks coronavirus!) have chosen Atlanta as their destination. In 2021, the number of luxury homes sold in Atlanta was 79% larger than in 2020.
Homes Are Selling Fast
Another notable trend in Atlanta real estate is its speed. A newly listed home can be sold in only a few days. The average went from 43 days in 2020 to 22 days in 2021. Some homes even go under contract within 24 hours of their listing! The speed of this market makes it challenging for first-time buyers, as described above, as well as those with limited budgets.
Join This Boom
If you are interested in taking advantage of the booming Atlanta real estate scene, you can become a real estate agent easily with our Georgia real estate agent course. Our GREC-approved course prepares you for the real estate agent exam. Study at your own speed, wherever you like.