Atlanta housing market gaining traction. Is there a chance we are in for a slowdown?
Does it excite you that the Atlanta Board of Realtors recently released the May Market Brief for the Atlanta residential market? Likely 99% of normal people would say ‘no.’ But luckily for you, my reader, it excites me and I’ve gone through the entire ABR report and other important economic information, and boiled it down for you to one sentence so that you can be in the know and go forth to make successful, savvy real estate decisions.
Are you ready? Here’s the one sentence: The Atlanta metro housing market will remain robust through 2016, thanks to domestically-driven industries; but it will stabilize and even cool off in the long term, so if you are considering listing your home, now is a fantastic time. Yes, it may be a tad of a run-on sentence—sorry English teachers out there—but luckily you’re reading for my real estate expertise and not English instruction.
Now go forth and conquer, but remember to call me if you’re considering listing your home to discuss your personal situation and neighborhood market conditions.
If you want to read more about the ABR report and what other economists are saying, I’ve continued the summary below.
Here are some highlights of the ABR report:
- Home Prices: The median sales price in May was $250,000, an increase of 4.2% from last May. The average sales price was $307,000, up 3.7% from the previous year. Compared nationally, according to the S&P/Case-Shiller GA-Atlanta Home Price Index, home prices in Atlanta continue to outpace the national increase in home prices.
- Demand: May residential sales were at 5,289, an increase of 3.4% from the previous year.
- Supply: Atlanta area housing inventory totaled 15,235 units in May, a decrease of 1.4% from May 2015. New listings totaled 5,428, up .4% from May 2015. The supply for sales over a 12 month period increased to 3.4 months.
This data tells me that we remain in a rather tight housing market with prices strong and inventory quite tight. The increase in the in the month’s supply indicates a possible cooling in the seller’s market with houses taking slightly longer to sell.
Continued reporting of strong growth in Georgia begs the question: how long will this “traction” last? Many people say it isn’t likely to last long term as nationwide job growth lags and global economies struggle. Both factors weigh heavily on Atlanta market.
Rajeev Dhawan, PhD, of Georgia State University Economic Forecasting Center warned of a slowdown at the recent GSU Economic Forecasting Conference, because he predicts slowed job growth and housing permits in 2017 and 2018. He also referred to the fear of over-building in Midtown and tighter financing for commercial building may indicate a slowdown in the market.
Domestically-driven industries, like hospitality, healthcare and construction, continue to perform strong and drive the current growth. However; according to Dr. Dhawan, the information technology sector—which is heavily influenced by the global economy—is losing jobs and could be a drag on the Georgia economy over the next few years.
So, with the current facts in mind, if you are ready to consider selling or buying a home in the coming months, let me know. I’d be happy to assess your personal situation and see how we can best help you achieve your goals.