Due to the current economic and real estate volatility, east cobb news has reached out to local experts to understand the state of the East Cob housing market.
I submitted the following question in bold to the East Cobb office of Harry Norman Realtors (4651 Olde Towne Parkway). The answer is in normal form. Lightly edited for style and punctuation.
We will be doing similar updates with other East Cob realtors and real estate agencies in the coming weeks.
Q. Please tell us about the current local real estate market, especially in the East Cobb area.
A. We are seeing a slight increase in the number of listings on the market in our region. The slight uptick is noticeable as inventories were very low at the beginning of the year. This can be seen when homes are on the market longer or prices go down.
Rising interest rates and the fact that so many people took vacations this summer (not traveling as much as they have in the last two summers) have directly impacted the local market, slowing down home sales. I believe it has declined. I believe the price cut is a sign of an ambitious seller, not depreciation.
In fact, we are still expecting a near 8-9% year-on-year increase. By comparison, 2021 uplift was close to 20% in our region, while 3-5% is historically “healthy” uplift.
Q. How is the current situation different compared to the recession?
A. The economic recession/financial crisis of 2008-2013 ultimately forced many builders and contractors to exit the construction industry en masse.The country experienced a shortage of housing under construction because of the financial crisis 14 The last time demand was this low was years ago.
Young millennials and the oldest members of the massively populated Gen Z are now in the prime of home buying. They are also the first generation whose parents and grandparents provided inheritance money to support purchases rather than saving money to bequeathed in a will. This helped fund more cash purchases and helped buyers bid against each other.
Q. What is your outlook for short-, medium-, and long-term interest rates?
A. In the short term, interest rates are likely to rise to control inflation, and once inflation is under control, the Fed will cut interest rates to help the economy emerge from the recession. Expert forecasts for the second half of 2022 through 2023 are in the 5-6% range.
Q. What made Atlanta’s metro market one of the most expensive housing markets in the country and what factors contributed to it?
A. Median home prices in Metro Atlanta hit an all-time high of $400,000. We are still considered very affordable compared to other metropolitan areas around the country, which is why we continue to attract companies relocating or opening new offices here. The price a buyer pays for a home in the market is a function of buyer demand and seller supply.
Q. How cold is the local market and do you think there will be a sharp decline or even a crash?
A. Our local market is showing good signs for 2019, which is a great year for our market and domestic real estate. 2020 and 2021 were extraordinary markets that happened to take off at supersonic speeds. I think I’m back at turbojet speed.
For a crash to occur, a sharp increase in listings and a sharp drop in buyer demand must all occur within a very short period of time. I wouldn’t expect either, especially given the current immigration pattern to Atlanta and millennials being in the prime of homebuying.
Q. What are the key factors that both buyers and sellers should focus on and how should they prepare for the coming months?
A. In early 2021 and 2022, buyers were competing with many other buyers for a very small number of homes on the market, or even before they hit the market. Buyers who “won” multiple offers tended to bid significantly higher than the price of the home, and to protect themselves, they didn’t put in as many contingencies in the contract.
Currently, there are still multiple offers for affordable homes in good condition, but not so many that buyers are likely to spend far more than the list price or all unforeseen costs to remain competitive. There is a tendency that there is no need to rule out situations.
Sellers should know that there is still strong buyer demand, but sellers are looking for homes that are not over priced and are in top condition. If the home does not meet the premium criteria, the seller may see the home on the market for a long time before winning the offer. In this changing market, a savvy and experienced agent can make a big difference in results.
As a buyer, you need someone who truly understands where the market is going so you don’t overpay based on the overheated market these days. And as a seller, to maximize your bottom line. You need agents who know how to generate demand for
Q. What other trends should I watch for the local market from the end of this year through 2023?
A. I think seasonality is back in the market. With more properties likely to hit the market through the end of the year, we expect to see another strong spring market as we have seen in the past. Our communities and schools are in high demand, so our market tends to revolve around parents making decisions around the school calendar. , which we expect will have an impact on the demand of buyers in our region.
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