You should consider selling now. Our market has seen price increases for 11 straight years and many economic experts are saying we’re headed for a market correction.
The unprecedented rise in interest rates has significantly reduced demand for homes. Recent headlines show Zillow lost over $50 million in the 3rd Quarter which looks relatively good compared to the Open Door loss of $928 million.
The CEO of Redfin (which has an iBuying arm) says “When the shiitake mushrooms hit the fan, you [investors] want to get out first,” Kelman said. “The way to do that is to figure out where the lowest sale is and be 2 percent below that. And if it doesn’t sell in the first weekend, move it down [again]. . . My take is that because builders and iBuyers account for more inventory, that leads to a faster correction,” Kelman told the magazine.
“We’re one of them — we’re an iBuyer.”
Add to this a report that says each of the two largest iBuyers lost about $40,000 per home sold (and maybe more in the inventory they have left) and one can see that the market has shifted.
Inventory is rising. Demand is curtailed. The basic laws of supply and demand state that prices must adjust. We do note, however, that never have interest raised as quickly or as much, percentage wise, in under a year. That demand is still strong due to under family creations, immigration, and population growth. So, we are uncharted territory.
If the iBuyers, and population do “unload” their properties by offering them at lower prices than the appraisers will determine we are in a downward moving market, and you may get less for your property than you could sell for today. Zillow predicted in the beginning of 2022 that home prices would increase 18% today they’re calling for a 1.4% increase.
Our area is scheduled for 3 to 4% increase, but all bets are off if mortgage rates don’t come down.
This quote is telling “A growing chorus of research firms and banks are predicting the sharpest home price declines still await. That includes firms like Goldman Sachs, Wells Fargo, Morgan Stanley, Moody’s Analytics, Capital Economics, Zonda, Zelman & Associates, Fannie Mae, and John Burns Real Estate Consulting.
“The longer that [mortgage] rates stay elevated, our view is that housing is going to continue to feel it and have this reset mode. And the affordability resetting mechanism right now that must happen is on [home] prices. And so, there are a lot of markets across the country where we’re forecasting that home prices are going to fall double digits,” Rick Palacios Jr., head of research at John Burns Real Estate Consulting, tells Fortune.
If you’d like a FREE no obligation professional pricing analysis on your property from a Professional vs on Online AI source, just ask. 770-726-1454 or email Mike.Stott@mac.com
Real Estate Stats and Thoughts
Our primary areas of service are below, and it appears that our market is shifting.
Market stats are showing some areas are no longer appreciating in value. Days on Market have doubled. Number of sales dropped 30% and the median sales price, while still increasing, slowed to an 11.9% rate year over year.
The previous highs in sales prices occurred in most cases in either June or July of 2022 – Woodstock had a high of $441,663 and is now $396,000.
Canton had a previous high of $485,000 in June and now is $451,250.
Acworth was $419,950 in July and is now $372,500.
Is this a sign of times to come? We don’t know because seasonality comes into play – we normally see a reduction in prices from the highs each summer over the winter and fall.
Mortgage rates will be a key influencer of demand.
While not as high as in the 1980’s mortgage rates have doubled in the past 9 months- Mortgage rates have never doubled in a year before! The chief economist at First American says, “House price appreciation has slowed in all 50 markets we track, but the deceleration is generally more dramatic in areas that experienced the strongest peak appreciation rates.”
Our areas of service saw relatively moderate increases in prices so we will hopefully not experience severe depreciation.
My Favorite Chart shows Historical Data of home appreciation over the past 30 years with a national average of close to tripling. This includes the worst ever decrease in median sales prices in history with the 2006 to 2011 housing fiasco.
Property Management: How to Advertise Your Property
Marketing your rental property is one of the most important steps in property management.
As soon as your rental home gets vacated, it’s crucial to make it ready for marketing. After all, you wouldn’t want to suffer long vacancies, as a vacation rental property is not generating any income.
Owning a rental property in Northwest Atlanta has proven to be a lucrative investment. But you’ll only gain the benefits of the great rental market if you know how to stage your rental home property to make it attractive to potential tenants.
Having the right marketing strategies is essential to ensure you remain profitable. No matter how good your rental property is, you’ll end up having to endure a non-income-generating asset if no one knows about it.
To start you off we at Northwest Atlanta Property Management have put together these simple tips to keep you on the right track:
1. Invest in Professional Photography
How can you make your rental home stand out among all other listings available? By using great pictures, of course Did you know that most people looking for a home to buy or rent will browse the photos first before reading the details?
In marketing, professional photography is not only recommended—it’s a must. Make sure to set aside a portion of your budget for professional photos, especially if you want your rental home to stand out among the rest of the competition.
Also consider a 3D Matterport virtual tour service.
We do both professional photos and 3D Matterport at no extra charge.
Here are a few things that you should keep in mind when it comes to great photos:
Stage the Property
Before taking pictures, make sure that the property is clean up to rental standards. Get rid of any garbage or unnecessary items that may be an eyesore to the viewer. Remember to create a space where potential rentals can feel excited to visualize themselves living on the premises.
Light the Property
The best time to take pictures is during the day when there is enough natural light to illuminate the area. If needed, professional photographers can use the right equipment to highlight dark corners of the room where natural light might find difficult.
Use Only the Best Angles
The ultimate purpose of professional photography is to ensure that the best features of your property stand out. Make sure to highlight the best angles when taking pictures, as well as the best rooms and spaces in your home. This makes the property look more appealing to prospective tenants.
Include All Important Rooms
Potential tenants would like to see all the rooms and spaces of the house without having to visit the property in person. As much as possible, make sure to include all important rooms, such as kitchens, bathrooms, bedrooms, living rooms, dining areas, and outdoor spaces.
1. Market the Rental – don’t just advertise it.
Compose a Great Description
When readers are attracted to the pictures that you post, the next thing that they will do is read the description that comes with the pictures. When writing a description, make sure to be as accurate as possible.
Also, you want to be creative as well so you can lead the readers to envision how it would feel like to live in your rental home.
A good description will help improve your post’s rankings online. You can ensure that your listings will be found when potential tenants search for a property in your area using the right keywords.
Here are the two essential components of a great copy:
Craft a Headline
The headline should be eye-catching and include all the necessary information that a tenant would want to know. The best rental advertising headline should contain the rental price, number of bedrooms, number of bathrooms, property type, specific area, and the property’s best features.
This is an example of a proper rental property marketing headline:
$2,500 4-bedroom, 2-bathroom single-family home in Cartersville with a spacious front and back yard.
Describe Your Property Clearly
After the headline, you need to compose a brief yet comprehensive description of the property. Include all the amenities provided, such as furniture, appliances, and parking areas.
Also, mention all the best features that your property can offer that can help readers make their decision. Use plenty of positive adjectives so readers can visualize what it would feel like residing in the unit. Include schools, shopping parks, etc.
Distribute Your Advertising Materials
Nowadays, the best method for posting your rental property ads is online. Many potential tenants are going online to find properties to buy or rent.
But you should also distribute your ads using traditional methods as well. This can help ensure that those people who do not go online will still know that your property is for rent. You can list your rental property on the classifieds of a local newspaper, post “for rent” signs, or distribute flyers within the area.
We know how to market rentals to get the highest number of qualified applicants possible. With more 70 years of combined Property Management Experience, there is no one better to manage your rental than we are at Northwest Atlanta Properties.
2. Hire a Property Manager
If you do not want to go through the hassle of marketing your rental home all on your own, you could work with an experienced rental property manager to help you with this task.
Rental property managers are knowledgeable of the local rental trends in the area, and they also know which platforms could gain the highest possible responses. Moreover, property managers know how to choose tenants to ensure that you won’t end up with difficult ones.