Real estate is still picking itself up from the great recession. Real estate trends across the country — and in Atlanta in particular — show that the tide is starting to turn, prices are starting to rise and mortgage rates are starting to go up. While recent years have been a boon to buyers, trends for the Atlanta area in 2014 suggest that the ball is back in the seller’s court.
1. Cost of homes is up
One of most important real estate trends in Atlanta for 2014 is the rising cost of homes. In February 2014, the median sale price for Atlanta homes was $187,000. Compared to last year, the median price of a home increased by nearly 17 percent, according to the Atlanta Journal-Constitution.
2. Number of available homes is up
Along with rising costs, the number of homes available in the area is expected to increase in 2014. In general, the number of houses available is up in the Atlanta area, and nationally. The number of houses available nationally was up slightly less than 2 percent in the fall of 2013, according to CNN. In Atlanta and a few other cities, available housing increased by 10 percent or more.
3. It’s a seller’s market
Higher home prices and a limited inventory typically means a better deal for sellers than buyers. If you’re planning on selling your home this year, the market is definitely going to be in your favor. The Atlanta Journal-Constitution notes that housing is still on the low side in the area. If the number of houses available continues to increase, though, the favor of the market will swing back to the buyers.
4. Negative equity should fall
Atlanta has long been near the top of the pack in terms of negative equity. Negative equity occurs when the value of the house is less than the amount of the principal on the mortgage, and it sometimes referred to as being underwater. In 2013, the city’s negative equity rate was 35 percent, one of the highest in the country, according to Zillow’s Negative Equity Report in the Atlanta Business Chronicle. The rate is expected to drop to just under 30 percent this year.
5. Millennials will play a bigger role
Atlanta will follow the lead of New York when its younger generation, which had previously embraced urban living, begins to move to the suburbs. Millennials, or people born in the 1980s and 1990s, are expected to play a greater role in the real estate market in 2014 and beyond. Millennials will be more interested in suburban homes, which typically offer more space for less money.
If you are interested in selling your home in 2014, Duffy Realty of Atlanta can help you list and sell your home efficiently and quickly so you can get the most for your property.
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