Whether you are a first time home buyer or looking to sell a home you bought a few years ago, right now is the time to act. While the metro Atlanta real estate market has made some big gains in the past two years, there are still opportunities on both sides of the closing table.
The Atlanta real estate market is stabilizing. According to the latest S&P/Case-Shiller Home Price Index, home prices in metro Atlanta increased 16.8 percent year-over-year in January, but decreased 0.1 percent from December to January. Home prices marked big gains on an annual basis, but they are now virtually flat on a monthly basis.
Experts say this slowdown isn’t something to lose sleep over. Economists believe that home prices in Atlanta will still go up in 2014, just not as fast as previous years. Home prices increased rapidly over the past two years, and if they continued to appreciate at that same rate, they could create another bubble.
So, what’s with the slowdown? Economists say it’s for a number of reasons, but primarily because interest rates on fixed-rate mortgages have increased about one percentage point over the past year, which cut affordability and reduced demand. Because of this, home prices are showing more modest monthly increases.
According to S&P/Case Shiller Home Price Index, metro Atlanta home prices are at mid-2002 levels right now, still below their peak in late 2007. At the same time, home prices in the Atlanta region have made some tremendous gains since the bottom of the market. Nationally, housing prices are still about 20 percent below their June/July 2006 peak, but they are 23 percent above their March 2012 lows.
So what does this all mean for you? Well, it depends on whether you are selling or buying. Either way, here is a quick rundown:
Looking to sell your home? If you have been waiting for prices to stabilize before putting your home on the market, now is the time to take action. It is expected that home prices will hit somewhat of a plateau in 2014, with modest increases when compared to the last two.
Want to buy a home? While Home prices (and interest rates) have certainly increased over the last couple years, there are still some deals available. In fact, metro Atlanta homes prices are at a midway point between their record lows and their peak in 2008. Inventory is a little low but there are still some deals available to anyone who wants to buy a home.
As always, if you are interested in discussing real estate opportunities, or just have a question about your current home, please contact Emily Freeman of Keller Williams Realty Peachtree Road.
Emily Freeman
Keller Williams Realty Peachtree Road
(c) 770-366-8876
(o) 404-419-3500
(f) 404-419-3501
emilyfreeman@kw.com
www.AtlantaRealty411.com
