Atlanta Housing Market Forecast
Consistent with other cities such as Los Angeles, Tampa, Miami, Houston, Seattle, and Philadelphia, Atlanta’s real estate sales waned as 2018 progressed. Last month sellers may have panicked, but many are still getting their price.
Yet Atlanta was one of the country’s better performing housing markets. A growing housing market, population, employment base, and economy should keep Georgia growing well beyond 2020 despite stock market troubles and political squabbles. The last few months, we’ve seen a cooling and big increases in listings, but demand for homes and rentals still seems to be intact. You can see the Atlanta resale housing stats below.
Zillow forecasts a 6.3% rise in prices in Atlanta for 2019. Rent prices in particular have risen strongly of late suggesting strength in the housing market. NAR believes sales will drop by 1.90% and prices will rise 3.0% in the Atlanta area during 2019.
February 2019 Housing Sales Report
Sales of homes dropped by 10% under December’s totals, while the average price rose 7.1% to $318,000. Yet sales were about typical for the month of January.
Listings climbed 53% over last months available units (4624 new listings) as sellers flooded the market creating a panicky situation. Active listings rose to 12,894 units up 20% from 2018. However, with supply down to 2.6 months sellers know they can get a good price for their home or condo.
According to NAR and realtor.com, the average listing price in Fulton County is $320,00 with median sold price at $235,000.
According to curbed.atlanta, rent price growth is increasing and supply is growing.
New Housing Developments in Atlanta
Curbed Atlanta reports 34 major development projects are underway in midtown Atlanta. This includes almost 2,400 apartments and condos under construction. Another 1,400 units are proposed.
Rentcafe cites the Atlanta community of Chamblee as have the fastest rent increases at a 44% clip over 5 year. During that time, renter income has fallen 8% and renter population has grown by 156%. That means high demand in a community of under 20,000 renters and 8400 homeowners.
Growing Demand for Rentals in Atlanta
Rentcafe cites the Atlanta community of Norcross as next in 5 year rent price growth here of 38%. Renter growth has grown 148%, yet renter income has dropped 17%. Demand is intense yet the average rent is only just above $1000 per month.
Atlanta’s population has grown as abundant job opportunities and affordable housing makes its mark in a country with very low affordability and housing crisis. The current situation isn’t all rosy. Georgia has problems with education levels, affordable health care, and a lack of suitably qualified talent.
Housing Market in 2018
Atlanta Realtors Association reported that home sales decreased 21.3% in December. The median sales price was $268,000 which is 7.6% higher than last year. Listing decreased 12.7%, and new listings rose 18.7%. Although home availability is increasing, higher interest rates will make it tougher for Millennials to buy in 2019. Millennials comprise over 40% of mortgage applications.
Trends for days on market and prices are following a typical yearly cyclical pattern so there’s not much to report on changes.
As the economy improves, the typical selling price in Atlanta will appear as a bargain for many property investors. This may be one of the best cities to buy a property.
Atlanta Georgia Economic Outlook
Benjamin C Ayers of UofG said: “We predict job growth in all of Georgia’s 14 metropolitan areas and in all of the state’s major industries. Georgia will benefit from several reliable sources of growth—including an impressive economic development team, favorable demographic trends, more homebuilding and real estate development, higher defense spending, continuing fiscal stimulus from recent tax cuts and faster productivity growth.”
Growth will slow as consistent with the overall US economic growth forecast, yet Atlanta’s employment growth will see 68,900 more jobs in 2019.
If the $5 billion plan for development in Atlanta’s downtown should push forward, the picture becomes much rosier.
Unemployment has dropped to 3.1% from last year’s 4.1% rate. New housing permits are expected to drop 3.8% after 2018’s phenomenal 10.8% growth. That still makes Atlanta’s employment outlook positive.
Atlanta Housing Market Hits a Turning Point?
Some are wondering if the slowdown this winter with the government shutdown, trade wars, and higher interest rates will slow Atlanta’s housing market. What’s happening to Atlanta is no different to other cities. These are macroeconomic factors.
The Federal tariffs on Chinese products will create a transition period of economic activity. As multinationals are forced to bring production to the US, cities such as Atlanta look very attractive. Atlanta is a distribution hub making it a smart location for a new American headquarters.
Atlanta companies should be lobbying multinational corporations and other foreign corporations to locate in Georgia. This is one of the biggest business events of the last 30 years and those smart entrepreneurs and financiers will draw them to Atlanta. Are you considering moving to Atlanta to live and work? It could be one of the best cities for 2019.
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