What is going on with Atlanta’s Real Estate Market?
Well it is the end of the year and there are a lot of changes in the overall real estate market.
Atlanta Real Estate Sales
We are seeing the lowest level of inventory for sales in a very long time. With fairly low levels of home inventory already and with people are taking their home off the market for the holidays, we have not seen the dearth of available homes on the market like we are today. So if you want to sell your home and it is in good condition at a reasonable close to fair market price, you should be able see multiple offers and a quick sale.
Trends we are seeing.
We are seeing listing agents employ techniques similar to car dealers. Advertising a lower price to get interest and using the competition to reverse auction the price up to way above the listing price in some cases.
We are seeing good quality homes selling for approximately 115% of the list price in multiple offers. So if you are a buyer, understand that the list price has little to do with the actual price of the home. Ask your agent to help you establish value & what strategies you can use to secure the home you want.
Atlanta Real Estate Rentals
Like the home selling side, we are also seeing quality rentals rent very quickly when they are in excellent condition. Homes that need some TLC will get looked at, but no applications. Tenants are very nervous about housing quality & owners too strapped to perform repairs. We have seen over and over again where tenants won’t move forward on a home unless it is in pristine condition.
No new trends about bed & bath counts – the more the better. We are seeing some movement in the lower bedroom & bath counts, but the market is still lagging and those homes need to be a great areas with a great price.
At SSPM, we are very low on inventory. A lot of tenants are renewing and staying put due to the cost of moving. This is good in some ways, but also creates some challenges. If less people are moving, there are less renters coming into the market which allows for more competition for those landlords who have their house for rent. We believe this will correct itself in the spring, but for now it is tight.
We are also seeing huge competition from the 3 major hedge fund buyers. These buyers are purchasing 200-300 properties a month each. That means that 600-900 foreclosures are being purchased each month. Most are not rented, so we are waiting to see how this affects the market as they all want to put them into rental service.
So if you are looking to invest in rental properties, you need to be quick and diligent of making offers in a very quick in decision making. If there is ever anything we can do to help you, please feel free to contact us 770.416.1444 for management and 404.886.8789 for sales.