Northwest Atlanta Properties

Home | Client Forms | Contact | (770) 726 -1454
  • Property Management
    • Property Management Services
      • Property Management Forms
      • Properties Recently Rented
      • Rental Value
    • For Tenants
      • Tenant Information
      • Tenant Forms
      • General Information for Tenants
      • General Questions and Answers
      • Tenant Move-Out Information
      • Emergency Procedures for Tenants
      • Utilities
  • Real Estate Sales
    • Looking to Purchase? Search Here!
      • Search Our Listings
      • Our Recent Sales
    • 1031 Exchange Overview – GA Edition
    • What Is My Home Worth?
    • What to Expect in an Offer
    • For Sale By Owner Resources
  • About Us
  • Testimonials
    • We Want to Hear from You!
  • Blog & Newsletters
    • Blog
    • Newsletters

WHAT’S GOING TO INFLUENCE OUR NORTH GEORGIA REAL ESTATE MARKET?

February 20, 2023 by Mike Stott

WHAT’S GOING TO INFLUENCE OUR NORTH GEORGIA REAL ESTATE MARKET?

From Your Friends at Northwest Atlanta Properties

Housing Industry “Experts” analyze the market data to forecast what’s to come. We’ve rounded up a few of the most important predictions for you to consider, but before we get to it, let’s talk about the last 7 months.

Median home prices peaked in June and declined steadily through January 31st. The year ended with the median price for a home in Northwest Atlanta. This set a new annual record of $454,813. Despite this record, the housing market continued shifting towards buyers. Year over year, home sales declined 9.4 %, and inventory increased. Homes spent an average of 38 days on the market, up 32 days from June of 2022. The number of closings dropped from 1222 to 478 – over 60% fewer closings (however the slower holiday season may account for 20% to 30% of this decline.)  High loan interest rates and lack of inventory contributed to the rest of these declines.

What’s interesting is that Year over Year, we have seen a moderate increase in median sales prices of 7.37%, which is being reported in the media.  So many home sellers feel the market is increasing when in fact, it, has decreased significantly.  The opportunity here is that if you are thinking of selling – DO IT NOW! Once the media reports prices dropping, buyers will expect you to “deal” and accept a lower price.

So, what will influence the 2023 housing market? 

 

Steadying interest rates

The Federal Reserve has pledged to slow down interest rate increases in 2023. Mortgage rates are expected to land somewhere in the mid-5% to low-6% range in the second quarter of this year… Pro Tip: Learn more about mortgage rate locks to support your buying power with certainty.

 

Will Home Prices go down in 2023?

Realtor.com predicts that our market will actually slightly increase by up to 4.7% in Atlanta – our suburbs and recent history indicate they may be mistaken, but they are using year-over-year predictions. We are guesstimating that our market will decline in price by 10% or so.

 

Affordability slowing home prices

Affordability remains a concern for buyers, but experts hope this will stabilize as home prices hit their first year-over-year decrease since 2019. The affordability challenge is real, but we’re here to help. Don’t be fearful of fluctuating mortgage rates to put off your needs or what is important to you and your family. There’s an old saying in real estate: “Marry the house, date the rate.” It’s misleadingly simple but does contain an element of truth. The average rate for a 30-year mortgage rate was less than 3% in early 2021 and just over that in January 2022. It is now 6 – 7%. Many economists expect rates to continue to increase in the coming months as the Federal Reserve attempts to curtail inflation. At a certain point, this could place the economy into a recession, which typically induces the Fed to reduce interest rates. Of course, it is possible that rates remain high over a long period of time. There is a lot of uncertainty in forecasting this, so proceed with that understanding, and talk to a mortgage professional before making any assumptions.

 

Motivated sellers

Sellers are more likely to agree to concessions when homes aren’t moving quickly, covering expenses like home warranty plans and even discount points towards a lower interest rate.

 

Inventory still lagging

The number of homes for sale will lag behind pre-pandemic levels but will be up from last year, giving buyers more homes to choose from. However, economic factors, including increasing construction costs, and supply chain and labor issues, could cause inventory to fall this year.

 

Monthly Rent Prices are Expected to Continue to Rise 

After 13 months of double-digit increases, year-over-year rent growth slowed to a single-digit pace in the late summer of 2022. Nevertheless, the cooling off does not mean the rental market will return to what was typical before the pandemic within the short term, especially when taking the high inflation rate and the strong labor market into consideration.  Since the second half of 2021, the national quarterly rental vacancy rate has been hovering near historic-low territory, in which only 5.6% to 6.0% of rental housing units are vacant compared to over 6% historically. It is the first time since 1985 that the rental vacancy rate has stabilized at such a low level for five quarters in a row. Although rental vacancy ticked up to 6.0% in the most recent data, U.S. renters will continue to face challenges from limited supply and excess demand in the coming year that will keep upward pressure on rent growth. At a national level, we forecast rent growth of 6.3% in the next 12 months, somewhat ahead of home price growth and historical rent trends.

Specifically, rental demand may be stronger in urban areas within big metros, a departure from both recent trends and what is expected in the for-sale market. Unlike the recent trend of renting in the suburbs to take advantage of remote work to lower housing costs, the premium on urban rentals has shrunk sufficiently to draw people back to big cities to enjoy their diverse social and cultural offerings. In addition, rising housing costs, stemming from a twenty-year high mortgage rate and slowing new construction, may keep many potential homebuyers in the rental market longer and thus fuel the already high rental demand. In fact, among recent renters surveyed, only a third (32.3%) indicated that they are considering buying a home within the next 12 months. One silver lining for renters is that despite slowing single-family construction, builders have generally ramped up the construction of multi-family units that are typically rental homes. This is expected to gradually create extra supply for renters, helping to eventually put long-term low vacancy rates in the rearview mirror.

 

Principal and Interest Payment Pain Point

Below is a chart created by our very own Jon Burke, that shows the free market is working.  When the median sales price and interest rates raised the associated payment above $1900 per month, the median sales prices started to decline.

A favor please … can you reply and answer this one question? 

Our property management division is growing, and we are looking to add innovative services that benefit you. If our Property Management services included a Pet Damage Guarantee and Eviction Guarantee, would that be valuable to you? This means we would cover the costs of an eviction and or any pet related damage or expense over and above the tenant’s deposits up to an additional $1000.  Your Peace of mind is what we are looking for.  We’d also back our promises with the ability for you to end the contract at any time with written notice.  Let us know what you think. And thank you in advance for responding.     All replies will get a “Thank-You” with Mailed Brownies! 

And lastly, this eye-opening article  describes the dissatisfaction tenants have with large institutional investor owners.  Poor maintenance, difficulty in getting a human to talk-to, lack of concern, and overall demeaning treatment is what allows us to shine with our tenants.  We listen, we communicate, we protect your property and investment, and this leads to happy tenants who stay longer and ultimately provide better returns as they turnover less frequently.  This directly puts money in your pocket with less vacancy, less “Make Ready” expense of paint and carpet, and more pride in caring for your investment.

 

Mike Stott, Jon Burke, and Donna Stott

Northwest Atlanta Properties

Mike.stott@mac.com

678-232-0927

Filed Under: Newsletters Tagged With: #1031TaxExchange, #atlantarealestate, #investment, #Investmentproperty, #Investors, #NorthwestAtlantaProperties, #realestate, #sellyourhome, Agent, Broker, Build a home, Build your home, buyers, consumer spending, CoreLogic, Down Payment, Economist, Equity, Fast Expert, Freddie Mac, Georgia Real Estate, homeownership, homes, housing, Housing Bubble, Investment Property, Luxury Home, Luxury Homes, Luxury Living, Mike Stott, National Association of Realtors, new home buyers, New Home Construction, Property Management, real estate, Real Estate Advice, sellers, selling your home, Top 10, Top Agent, Unemployment, Warm Fuzzy, Wealth

About Mike Stott

Latest From Our Blog

What’s Ahead for Home Prices in 2023

Over the past year, home prices have been a widely debated topic. Some have said we’ll see a massive … Read More...

Here’s Why the Housing Market Isn’t Going To Crash

… Read More...

What Buyer Activity Tells Us About the Housing Market

Though the housing market is no longer experiencing the frenzy of a year ago, buyers are showing … Read More...

View Full Blog >>

More from Our Clients

“You can invest in the best markets in the country but if you don’t have a great management team looking after your investments you can still lose money. That is why I stick with Northwest Atlanta Properties. I tell people it is like buying a mutual fund. You buy a property and the fund manager does the rest. If he does a good job you buy more. That is why I am buying more.”

Jamie Neely
Jamie Neely

“Great Service, everything was wonderful”

Gary Thurman
Gary Thurman

“What a Fantastic Job you guys did! I knew I wanted to hire the team the moment I met them. They are spot on. They did all of the legwork, and at times seemed to move mountains for us. We truly could not be happier!”

Johnston
Kim Johnston

“You guys are the best! I was so scared to pull the trigger on this and you have gone above and beyond to make things go smoothly. You guys are the best!! Many mahalos”

Maili
Maili

“Mike and Jon are the best! They made everything so easy!”

Andy Sexton
Andy Sexton

“This is our second transaction with Mike, Jon, & Donna. I Recomend them to everyone I know!”

Vic & Tammie Pecora
Vic & Tammie Pecora

“I just bought a home in the Woodlands! If you need a great realtor, Jon Burke with Northwest Atlanta Properties was Awesome! He was very knowledgeable and there for me every step of the way!”

Patty Cunningham
Patty Cunningham

“Many Thanks, Jon, Mike for outstanding service & support”

Ritesh Betala
Ritesh Betala

“We went from knowing that we could never buy a house to owning our new home!”

Don & Kris
Don & Kris

“Couldn’t be happier. Looked at houses one weekend, picked our favorite. That’s the one we bought. Got everything we wanted and more in negotiations. They held our hands through the entire process, going above and beyond at every opportunity. NWATLP Introduced me to my now lender, my inspector, and even helped me pick a home warranty! ‘One and Done’ should be their new catch phrase!!!”

Elizabeth W.
Elizabeth W.

“Wow, we ended up being one of those people who sold their house in a day. Mike and Donna delivered exactly what we asked them to do and we are so happy we trusted intuition and our friends.”

Chris G.
Chris G.

“Seriously, you were great!”

Dan & Mimi Murray
Dan & Mimi Murray

“This was our eight transaction. It went as smoothly as possible and sold in two days!”

Marc Bootman
Marc Bootman

“We were blessed to have Mike and Jon sell our house. They were extremely professional and stayed in great contact with us. We interviewed 7 agents and they were simply the most prepared and had the most logical marketing plan. Their pricing spreadsheet really made a big difference. We highly recommend them.”

Daren & Sandra Woods
Daren & Sandra Woods

“I can hardly believe we made it. Thanks for your patience with me and the loving guidance you
gave.”

Lynn Bodenstein
Lynn Bodenstein

“Just wanted to take a moment to thank God for sending you to us. You made the sale of our house grace-filled andeven fun with your humor. And, literally, you have driven all over the place trying to help us find the right home nowthat you sold ours. You get 5 stars and my personal recommendation which I don’t give out lightly. Thank you forbeing a man of excellence!”

Jay & Becky Harmon
Jay & Becky Harmon

“Mike and Jon helped us find a home that we love! They answered every question with professionalism and ease. They made the homebuying process so smooth! 5 stars to Northwest Atlanta Properties, we will recommend them to anyone looking to buy or sell their home!”

The Kornegay's
The Kornegay's

“Wow. Service with a smile. Knowledgeable and gave me all the info needed to find and buy our perfect house.”

Adam Winnie
Adam Winnie

“First of all, I want to tell you how happy and fortunate we are to be working with you. I love the way you are with people. You’re so calm & attentive and present. And it was wonderful how you had taken pictures before the meeting. So we are so lucky to have you on our team. Thank you, Jon!

The Fabozzi's
The Fabozzi's

“The BEST out there. I loved how I would get an email when the house was shown. I was always super informed! Super professional in all aspects!! Thank you, Mike!”

Kristy Haines
Kristy Haines

“Northwest Atlanta Properties sold our house for the highest price in the neighborhood; EVER! That can’t be beaten! “

The Louder's
The Louder's

“My Wife and I became first time home owners in Sept. Northwest Atlanta Properties guided us every step of the way. They introduced us to several lenders, Home inspectors, and Appraisers. They were always concerned with what we thought and our preferences. We went out One Saturday and saw 6 listings. We put in an offer on the one we liked and Got it!!! They stepped in and made negotiations easy as well as prepped us for the eventualities we faced. They should change their slogan to “One and Done” We will never use anyone else.”

Josh
Josh

“This family-owned business was a joy to work with! They listed to exactly what we wanted and put our priorities above their profit margins. I never felt pressured to go into a higher price point then we were comfortable with. They showed us several homes in the areas we were considering and worked with us every step of the way. We were new to the state so relied on their expertise to find us the perfect community for raising our children. I was in constant contact with Donna, Mike, & Josh who never made me feel like I was bothering them. Their many years of expertise made me feel safe and confident while looking for our home. I couldn’t recommend them enough!!!”

Katherine B
Katherine B

“If you are looking for carefully curated experience combined with friendly and understanding customer service then this is the place for you! This is a company that puts their every effort into finding you the perfect home. I spoke with Donna and Mike Stott, Jon Burke, and Josh Weinberg and they were absolutely fantastic. I never felt rushed and they listened to my idea of my perfect dream home with rapt interest that resulted in a selection of beautiful properties and houses. I can’t thank them enough for their experience, time, and attention to detail.”

Alexis
Alexis

“It was a pleasure working with Mike and Donna on getting their properties scanned for 3D tours! Responsive and fair, I would love it if all my clients were this way 😉 Thanks so much for the great relationship!”

Sasha B
Sasha B

“Mike was my listing agent and I had what we both knew would be a hard sale. I went though several other agents and Mike was the one who put in the hard work to get a contract and most importantly closed. It was not an easy process but he made it happen. I highly recommend.”

Ryan Jacobs
Ryan Jacobs

Mike, we had the best realtors in GA❣️😘 thanks to you and Donna we found our dream home! We highly recommend Northwest Atlanta Properties!

 

Ellen Rich-Fox
Ellen Rich-Fox

“Outstanding! I wish every realtor was this thorough! Thanks!”

Frank MUSCENTE - Owner, a closer look
Frank Muscente, Owner, a closer look

“Couldn’t of been easier, best realtor service I have ever had”

Amos Cordell
Amos Cordell

Donna, you and Mike are not at the top of my list of Realtors — YOU AND MIKE ARE THE LIST!!📣

Aileen

Northwest Atlanta Properties

Home Sales & Property Management Services

Professional real estate services for Sellers, buyers, owners & tenants. Specializing in the Northwest Atlanta communities of Roswell, Marietta, Alpharetta, Milton, Woodstock, Kennesaw, and the Surrounding Areas.

Contact Us

We look forward to hearing from you!
Office: (770) 726-1454 anything@nwatlp.com

3380 Trickum Rd Bldg #1300 Suite 100 Woodstock, GA 30188

Be sure to follow us!

Follow by Email
Facebook
Facebook
fb-share-icon
LinkedIn
LinkedIn
Share

Copyright © 2023 · Northwest Atlanta Properties · Website by Visule Web Media

Copyright © 2023 · Executive Pro Theme on Genesis Framework · WordPress · Log in