Real estate market in Georgia has been one of the most stagnant in the country for the last 10 to 25 years. Home prices have not appreciated much and rental rates have remained relatively affordable. According to Rent Appeal, property management in Marietta GA and other suburbs of Atlanta has not been a booming business like in other suburbs of other big cities in the country. According to the National Association of Realtors report, Georgia is one of the ten states that are lagging behind in as far as housing recovery in the U.S. is concerned. One of the reasons why Georgia has not caught up with other states in the ongoing housing recovery process is because of tight mortgage credit, explains realtor Howard Flaschen.
However, real estate in Georgia experienced some changes in 2015 and some areas registered highest home appreciation in the country. This has caused panic to many people and stakeholders are wondering whether this could be the upsurge of Georgia real estate market. Moreover, the recent increase of Federal Reserve interest rate has raised many questions about the direction that Georgia real estate is going to take. Although no one can really predict Georgia’s real estate future with certainty, realtors in the region are optimistic that real estate in Georgia will begin its recovery journey in 2016.
Property management in Marietta GA and other suburbs of big towns in Georgia has recently attracted more stakeholders because they believe 2016 will be an excellent year for Georgia real estate. Many property managers in the region believe that Jonathan Smoke, Chief Economist with Realtor.com was correct when he predict real estate growth in Georgia and North Atlanta as the fifth best real estate market nationally in 2016 (http://www.atlantaintownpaper.com/2016/01/home-trends-realtors-make-predictions-for-2016-market/). In order to have a better understanding of Georgia real estate market, the following are highlights on how expert believe different factors will affect real estate market trends.
Availability of inventory
Real estate in Georgia is expected to be attractive to sellers in 2016, although stronger economy many change things and make the market attractive for homebuyers. However, it is worth noting that home prices in in-town places will remain relatively high. The good thing is that more homes are expected on the market as the economy and real estate continues to strengthen. Unlike in 2015 when there were low inventories of in-town homes, things are expected to change in the near future because of numerous constructions taking place in Georgia. With more inventories in the market and good economic conditions, the number of first-time home homebuyers is expected to rise regardless of tight lending rates. However, real estate market in Georgia is expected to “remain sellers” market for quite some time.
Increase in Interest rates
Many people believe that the recent Federal Reserve interest rate increase is going to have big impact on Georgia real estate. However, experts seem to have a different opinion. For instance, according to Lisa Johnson, Vice President/Managing Broker with Atlanta Fine Homes Sotheby’s International Realty–In-Town Office, interest rates are still low compared to past years. She believes that real estate in Georgia is going to experience steady growth throughout 2016. The recent interest rates increase will not have big impact on real estate because rates are still low, even after the increase. The recent increase in interest rates will have a minor impact to many homebuyers and only those with limited income will be greatly affected.
Change of lending regulations
The introduction of new lending regulation in Georgia real estate market is expected to slow down closing of deals in the next few months. However, experts believe that the situation is going normalize after sometime, when the industry settles-in with the new closing guidelines and lending regulations. It is also worth noting that funding will remain available to homebuyers who will satisfy the classic lending standards.
Atlanta is believed to be the city for millennials due to availability of jobs, affordable housing and vibrant nightlife. About 13.5 percent of the population in Atlanta is between 24-35 years.
More people are expected to relocate to Atlanta and other major towns in Georgia in the near future. The population increase is expected to cause rental prices to go high in the next few years but the situation will eventually normalize after the ongoing constructions are completed, especially in out-of-town neighborhoods. However, home prices and rental rates are expected to continue appreciating in in-town neighborhoods due to lack of space to build more houses.