Real Estate Trends and the Rental Market
In many large cities, home prices have outpaced income at an incredible rate. In Miami, for example, incomes have risen 16%, while home prices have increased 58% since early 1998. Boston home prices have gone up 89%, while incomes have increased only 22%. Here in the Georgia area incomes has increased by 64% since 1997 and housing has increased by 22.3% since 2020. Atlanta is still looked at one of the most affordable areas when it comes to housing, even with the increases in recent years.
With a possible downturn in the real estate market looming according to some, home sales are still headed for another record year. At this point the housing market forecast is continued growth of a slower pace at 5.5% increase and a continued Sellers Market into 2022! For many Buyers this has pushed them into another year in a rental. But... this could change drastically, keep reading!
Home sales in Atlanta have started to slow a little, but if you are in the $250k or below range, the houses are still moving at a pretty good rate. The upper areas have slowed unless you are in a great location or have a great price. Also, this is very dependent on which area of Georgia you are looking in. The middle of North Georgia seems to outpace all other areas month after month even with some of the higher price tags.
Low interest rates are continuing to be a positive trend of the housing market. Low rates average less than 4% still for 30-year fixed-rate loans, the lowest since the 1960s.
I had the pleasure in attending the Greater Atlanta Home Builders Association Governmental Affairs Meeting today. I learned so much including that some areas of Georgia are trying to restrict rental properties. What impacts could this have on the future housing market and the forecast?
My thoughts, this could lead to more homelessness in the area for those who cannot buy and happen to be in one of these areas. It could also put more stain on the already strained housing market with more renters being pushed into buying now vs later. It definitely is an interesting development in some municipalities and why they would take this approach. Be on the look out if you are a renter. It is time to start thinking about buying...