Do Atlanta Home Buyers Have the Advantage?

housing-market-change

As inflation cramps the economic health of the country, it’s up to the Federal Reserve to find a solution. The bag of tricks contains really only one tool; raising benchmark interest rates. Everyone expected that, but the Fed waited a bit too long and is now rapidly playing catch up. The result? An Atlanta area real estate market that’s turned on a dime. In the span of a few weeks, the playing field leveled and many are asking if Atlanta home buyers have the advantage now.

Atlanta Home Buyers Breathe

Rates started to rise as the government stopped buying mortgage backed securities, that was the heads up that rate manipulation was over. As inflation rocketed to historic highs over early ’21, the Fed went to work. Rates more than doubled between Jan 21 and Jun 21, currently between 6-6.25%. That moved the needle to a more balanced market.

Above is a chart showing the six main metro Atlanta counties, we see months of inventory (blue) and days on market (green). While days on market remain low, note the spike in MOI; from a strong seller’s market to one closer to neutral. That rise is welcomed news to the buyers out looking, the insanity of the last two years seems to be easing.

Time for Home Buyers to go Hunting?

Everything is a trade off. The current inflation fiasco is due to several things; printing trillions of dollars, artificially keeping mortgage rates lower than they should have been, reckless and wasteful government spending and handouts, poor energy management…pick any of a hundred reasons. The bill is due and for home buyers, it means higher mortgage rates. However, while a segment of buyers are used to sub 4%, rates, under 7% remain historically favorable. This bump certainly eliminated a segment but it also may slow the overall affordability issue which is rapidly forming. Is it time to go hunting if you’re a home buyer?

Fewer Buyers, Less Competition

The number of contracts written around the Atlanta area in May was HALF that of April. The number of listings jumped as it does every spring.

Look at the gap that developed in May and continues into June. We see the Christmas holiday slump and the spring market pick up. But spring isn’t sprung, the Fed’s required actions slowed the Atlanta real estate market. The number of homes sold in May nose dives and that’s continued into June. The rising rates removing many borderline buyers and moving others down in price point. But for those that can and want to buy, the balance appears to be moving in the right direction

If you’re a home buyer in the Atlanta area or anywhere in the suburbs, the advice is simple:

  • Work with an experienced professional
  • Define success
  • Work with a trusted local lender
  • Acknowledge the data
  • Write a logical offer
  • NEVER buy something you will regret

The current economy is not healthy, and it will take some time to sort out. As rates rise, be certain to keep an eye on the economy in general. Evaluate everything, consider all options and make educated decisions. VET YOUR AGENT AND LENDER, this is not the time for Timmy from the tennis team who has a total of two sales in the last year. Timmy doesn’t know what he doesn’t know…Don’t be the one he finds out with.

Here’s the post and video on the overall Atlanta area real estate shift, take a look.

Here’s the post and video for Atlanta home sellers.