Marietta, Georgia –
Mandich Property Group, based in Marietta, GA, has shared a new update on the Atlanta housing market on its official website. According to the firm, it’s commonly believed that Atlanta’s housing market has been on fire for the past two years, most likely due to historically low mortgage rates and the coronavirus. Many residents have moved from heavily populated areas to less dense suburbs. Homeowners were refusing to sell their properties and new construction was down due to a lack of labour, resulting in a shortage of homes, both new and existing.
The most important question the firm discusses in its update is what this means for the 2022 market. One aspect is that home sales are down. Two major factors are slowing home sales right now; the first is rising interest rates and the second is more homes coming on the market. This indicates that the seller’s market is turning more towards the buyer’s market, or at least is becoming a more stable and normal real estate market. Kam Williams recently stated this in Atlanta Magazine. “The days when an ad comes in at 5 p.m., and has to see it at 5:05 p.m., and have 40 offers on a property — we don’t have that anymore,” she says. “Now buyers are a bit relieved. If they see something, they don’t have to run away in the next two seconds.
This leads to the next question in the market update that has many people worried: is the market heading for a crash? Many are worried about another crash like the one in ’08. In fact, Google trends show that more users are searching for the term “housing crash” and similar terms more than at any time since ’07. The news may also seem rather bleak, the firm comments, but market data thankfully does not support such conclusions. Some experts actually predict a correction in the real estate market. The housing crash of 2008 was due to banks’ lax credit standards and a housing glut. Banks aren’t granting the risky loans they did years ago, and foreclosures are still low. Housing stock remains extremely low overall. However, Metro Atlanta’s housing stock has reached its highest level since September 2020. This provides further evidence that things are turning in buyers’ favor. It is likely that the community will soon see a return to a normal market.
Some potential buyers are experiencing real difficulties because of the increase in borrowing rates. The cost of housing is still very expensive. The typical price of a home in Atlanta is over $400,000. This price alone discourages many young buyers and first-time buyers, and the problem is only getting worse as mortgage rates rise. For example, a $300,000 home would see an increase in monthly payments of over $350.00 if the fixed rate increased by 2% (from 3.5% to 5.5%). With less inventory and competition from other bidders for the same good, this should, in principle, impact buyers at the bottom of the market. Mandich Property Group believes trends will continue to slow, especially if interest rates continue to rise. Raising interest rates is the only protection the Fed has against inflation. Prices will continue to rise due to the exceptionally low supply of homes for sale, but there will be a modest correction as some sellers are already lowering their asking prices.
One of the most reputable businesses in the neighborhood, the company offers reasonable prices, quick closing times and flexible terms. They state that in order to combat the lack of options in the market, they will intensify their efforts to provide fast and reliable service in the coming months. When selling a home in Atlanta, they are among the top considerations for a partner because of their knowledge and reliability. To answer any questions and learn more about how the company buys homes in Atlanta, interested parties can contact the company by phone or email. Their website and social media channels also offer more resources and information.
For more information on Mandich Property Group, contact the company here:
Mandich real estate group
2415 Broward Dr, Marietta, Georgia 30066