3 THINGS TO KNOW about the Atlanta Residential Real Estate Market

3 THINGS  TO KNOW
What August 2021 Numbers Indicate:
trends looking back & predictions looking forward

1. Sales prices
2. Number of homes selling
3. How long are homes taking to sell


1) Sales prices
Atlanta Sales Prices are up 20% year over year
August '21 $340,000 - month over month trended downward
August '20 $290,000 - month over month trended upward
August '19 $255,000 - month over month trending downward

Month over month sale price trends in August, 
July to August to September are usually downward, but 2020, post “COVID Lockdown” month over month, median sales price went up.


2) Number of home sales in Atlanta are down by over 1,000, 10%, year over year from '20 to '21
August '21 8,814 - month over month trended downward
August '20 9,791 - month over month trended upward
August '19 8,922 - month over month trending downward

Month over month number of sales in August, 
July to August to September are usually downward, but 2020, post “COVID Lockdown” month over month, number of sales went up.

3) Days on Market
August '21 - 7 - month over month trended upward
August '20 - 15 - month over month trended downward
August '19 - 22 - month over month trending upward

Month over month Days on Market trends in August, 
July to August to September are usually upward, but 2020, post “COVID Lockdown” month over month, Days on Market went down.


What about interest rates?
J Powell’s announcement that the Federal Reserve will not be tapering bond purchasing, yet. Predictions are that interest rates should remain low, around 3%, through 2023.


What does all of this mean?
Low interest rates remaining combined with strong prices, low days on market and predictions are that it will take up to 10 years for inventory of homes available to meet demand, the housing market should remain strong. 


What if you are Selling? 

The key is to ensure your home is:
- properly presented  
- properly marketed 
- well negotiated 

What if you are Buying?

They key is to ensure that you:
- know what you want 
- know your options 
- get the right property AND the right terms

If you're selling, make sure you have the agent who knows the market and has the resources and experience to present, market and negotiate to meet your goals.

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3 Things to Know... 

What could drive mortgage rates up? 

& What is keeping mortgage rates low? 

(episode 59)

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What could drive mortgage rates up?

1) An improving economy 

— The better the U.S. economy performs for jobs, consumer spending, and overall growth, the higher interest rates should go.

2) Inflation 

 — Inflation almost always leads to higher mortgage rates, and inflation rates in 2021 have far exceeded expectations. (Although the Federal Reserve still maintains current inflation rates should be temporary)

3) Real estate demand 

 — Despite low inventory, demand for new homes and existing homes remains incredibly strong. Normally, a surge in mortgage financing should lead to higher rates.

*What’s keeping mortgage rates low? *

1) The Delta variant 

 — Fear that the coronavirus Delta variant could stall economic growth at home and abroad is pushing mortgage rates down. Remember that weaker economies lead to lower mortgage rates. 

 2) Easy money policies by the Federal Reserve 

 — By keeping its benchmark interest rate (the Federal Funds Rate) near 0% and continuing to purchase billions of dollars worth of mortgage-backed securities (MBS), the Fed is keeping mortgage rates artificially low .

3) Foreign investment in U.S. debt 

— Foreign investors continue to purchase relatively safe U.S. investments, including things like 10-Year Treasury bonds and MBS. An influx of dollars from these investors means continued low interest rates for borrowers

3 THINGS TO KNOW...
Money Making Opportunities
When You Move

with Dara Laughlin 
at EBTH.com
Everything But the House
(episode 58)

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1) How to minimize the cost of moving and getting rid of things you won't keep. 

2) How to not just get rid of, but get top dollar for the things you don't keep. 

3)  How to make sure you don't lose any opportunities.
Often, the smallest easily missed items often reap the greatest rewards.

3 THINGS TO KNOW...
Anticipating Home Prices
& Mortgage Rates

with Steven Thomas
at Sanctuary Mortgage
(episode 57)

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1) Supply & Demand
Appreciation may slow but prices will keep going up.. How Supply and demand, not just now but over the last 50 years explains it.

2) The health of the real estate and mortgage market today.
How are we sure? What about the Health of our market today. The last time things were "hot" we crashed. What's the difference between now and 'last time'.

3) Now, what about mortgage rates?
Tools to help predict mortgage rates... How volatile can they be and get, how and why.

3 THINGS TO KNOW... About What's Happening with Office Space & How It's Affecting Home Sales.  
with Gregg Metcalf, EVP at JLL, who specializing in representing companies who lease office space nationally and globally. 
(episode 56)

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1 - Hybrid workplace
What to know, how it's changing where we live and what we buy.

2 - Transition to sunbelt cities.
What are sunbelt cities and why companies are moving to them. 

3 - Companies' drive to hire a more diverse workforce.
Atlanta is where it is with more HBUC's and a diverse population, rather than recruit, the corporations are coming to the workforces they desire to hire.

3 THINGS TO KNOW... About Buying or Selling a Cond... 
with Craig Dodd, our Condo Specialist and luxury expert with record breaking sales and ahead of the curve on off market properties for our Buyer clients. 
(episode 55)

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1 - What to know about what is a condo
What to know, what to consider, the new paradigm, how do know if it's for you.

2 - The Lifestyle Options 
The various lifestyles offered by condo-living, what do consider, What to know and how to secure the right buyer who pays the right price for what your condo has to offer.

3 - The Financials, what gets missed
Fatal errors missed, how to avoid them. How to turn issues into opportunities.

3 THINGS TO KNOW
Home Prices in Atlanta
Past, present & predictions
(episode 54)

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1 - Past
Year over year homes in Atlanta have appreciated at an average of 4.5% annually. According to NAR, since 1968, homes have appreciated on average, 5.4% annually a year across the nation.

2 - Present
This year the annual average home sale price price in Atlanta is up by 20%, 15% to 25% depending on the area. While this is true, if you go back to 2002, you'll see that from 2002 to 2021 while the market has been up and down, over those 20 years the average appreciation as of 2021 remains 4.5%.

3 - Predictions
Inventory remains low. According to John Hunt at Insights and other data experts, at the rate of sales combined with the rate at which we are able to build homes and owners will sell homes, it will take ten years or more for inventory to catch up to the demand for homes... this means, prices will continue to rise.

3 THINGS TO KNOW
The Latest Numbers...
Buckhead Remains a Hot Market
(episode 53)

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Last week we talked about the concerns for safety in Atlanta and what is being done by the state of Georgia to ensure not only that we are safe again but safer than before.

Questions remain about the market in Atlanta and how the concerns for safety will affect our market. The latest numbers indicate that we remain strong.

Looking at all homes closed in Buckhead in the month of June 2021 compared to the month of June 2020*

- the average sales price of those homes is up 24%,
from $1,176,000 to $1,228,000

- the number of homes sold is up 58%
from 100 homes to 158 homes

the average days on market is down by half,
from 85 days to 44 days

*going back to the month of June 2019, comparing it to month of June 2020, 2020 is stronger but similar relative to the comparisons between June 2020 and June 2021 shown above.

3 THINGS TO KNOW... 
About How Atlanta Will Be Safe Again
...how the APD and Georgia are working together. 

1) State Patrol and Atlanta Police Department are collaborating to support police officers in Atlanta. 

2) Legislation changes at state level. 

3) Programs and incentives to enable Atlanta Police Officers to live in the areas they serve.

LISTEN & SUBSCRIBE TO ALL MARKET UPDATES AT
3THINGSTOKNOW.jmpartners.io

3 THINGS TO KNOW
About Mistakes, Sellers Make in this Market ... 

In Buckhead, 
The number of home for sale is half what it usually is in June 

The number of sales, while the same in Atlanta, is almost double in Buckhead. 

Sellers still make mistakes... 

3 Mistakes Sellers Make in this Market: 

- pricing strategy 
- staging and presentation
- negotiating


The Seller still has competition; it can be a win or lose market out there. If you're selling or buying, make sure you do it right. 

It’s as important as ever to have the right team of experts by your side.