Atlanta has been a huge seller’s market in the past two years. After a slump in 2020 when the pandemic first hit the United States, home buying has soared. This, of course, isn’t a phenomenon unique to just Atlanta luxury real estate but something we have seen all over the US in most major markets. California, Texas, and New York have all seen this, too.
Some markets in the US are finally starting to cool, and prices are falling. Many potential buyers are asking if houses for sale in Midtown Atlanta
or the outskirts of the city are going to get the same treatment, and if buying real estate will be easier. Sellers are concerned prices will drastically drop, and their Atlanta luxury real estate will not be worth what it once was.
Whether you’re thinking about buying or selling in Atlanta this year, you should be aware of the moves the market is making and how it is going to affect you. This is everything you can expect in the coming months from the Atlanta market.
Atlanta Real Estate is Priced at a Premium
If you have peeked at local listings recently, you probably know that homes for sale in Midtown Atlanta and downtown are priced fairly high. In fact, several studies suggest that Atlanta luxury real estate is priced higher
than most other places in the United States.
The truth is, people just want to live in and around Atlanta. It’s a thriving metro area with a lot to offer professionals and families alike, and those who want to live there aren’t afraid to spend the money on the property to get it. A few years ago, many people thought that Atlanta luxury real estate was a far better ‘deal’ than comparable properties in California or New York.
Now, with high prices, people are not as sure.
Prices Not Set to Fall
Not when it comes to homes for sale in Midtown Atlanta, or any part of Atlanta for that matter.
Home prices continue to rise
in Atlanta, according to several reports, with 2022 on pace to break more records. Historically, housing prices rise when there are inventory issues. Not enough inventory to meet buyers’ demand equals higher prices.
In the last several months, Atlanta luxury real estate has seen more inventory. Houses are sitting on the market a little longer than they used to, and buyers aren’t feeling quite so desperate. However, it’s still not enough, and people who have wanted to buy their own home for over a year now and have been outbid or missed out entirely are snatching these properties up.
Inventory is Starting to Replenish
As mentioned, the inventory of houses for sale in Midtown Atlanta and the downtown area is starting to return. There are more houses on the market now than there were this time last year, and projections have that trend continuing to the end of the year.
This is a great thing for buyers because who doesn’t want more variety? If you have been wanting to buy your own piece of Atlanta luxury real estate or upgrade where you currently live, the next few months will see more properties open up for you.
As a seller, this also isn’t a bad thing, but it does give you more competition. The good news for you is that despite the competition, prices are still high, so you can expect to get the most from your property. However, you may not see the intense, immediate interest that you did a year ago.
During the peak market, houses were being viewed, and offers were being placed almost immediately after going public, often with multiple offers over asking. Now, properties may sit for a few days or even a few weeks, depending on location and condition, before an offer is placed.
This doesn’t mean the market is slowing at all, but it’s just not so unbelievably intense.
New Builds Aren’t Keeping Up
Another challenge for the Atlanta luxury real estate market is that new builds simply aren’t keeping up
with demand. Developers and investors cannot build homes fast enough for the current need, which is another reason why prices are up and continue to be high.
Supply chain issues have made sourcing materials difficult, with major delays for much of the equipment and products. Employee shortages for labor-intensive positions mean even when developers can get the materials, they struggle to get the proper help to put everything together. It’s a bad cycle with no real end in sight.
Investors Are Changing the Game
Investors are also very prevalent in the Atlanta market in general. More than any other metro area, Atlanta luxury real estate has a big investor presence
. Approximately 30% of the real estate sold in the metro Atlanta area in the last quarter of 2021 was sold to either an LLC or a corporation. This represents a huge portion of the homes for sale in Midtown Atlanta being purchased.
When you combine the lack of inventory with the investor presence and add on a lack of new builds, it’s no wonder prices are so high. Corporations and investment companies have no issues, often outbidding or offering over the asking price because they have a huge pool of money to pull from and a team backing them up. It’s harder for individuals looking at homes for sale in Midtown Atlanta to compete with an investment group offering an all-cash above asking.
Are You Thinking of Buying or Selling in Atlanta?
Is it time for you to buy your very own Atlanta luxury real estate property? Or, are you considering taking advantage of the high prices and listing your home? When you’re ready to make the move, reach out to Patricia Queen
. Patricia has worked in real estate for 14 years and understands the current market and the major changes happening in Atlanta right now. She has a huge network of professional contacts to draw on, so regardless of real estate needs — Patricia can get you where you’re going.