Home prices soared last year, by as much as 20%. Will 2022 be another strong year for real estate in Atlanta? We asked local real estate agents to share their forecast for this year.
Cynthia Lippert, Atlanta Real Estate Association
Many real estate agents will have already developed their 2022 business plans. Here are some of the predictions that inform the strategy on how best to serve their clients over the next 12 months.
Interest rates are expected to rise in 2022. According to several industry sources, economic indicators point to increases in mortgage rates, although opinions on when and how much vary widely. But real estate agents are warning buyers that in addition to higher prices, which are expected to continue to rise through 2022, even a small increase in rates will impact purchasing power. Waiting may not pay off in the long run.
Price increases will continue but perhaps less sharply in 2021. The message for sellers is that while 2021 was not the year to sell, 2022 is. The seemingly unstoppable rise in home prices has generated huge gains for sellers, leaving many wondering how much longer it will take before they peak. Sellers still have big gains to make in the coming months. However, sustained inflation, the lingering uncertainty of the pandemic and the potential for rising interest rates could well undermine buyer demand and slow this growth. And while we still don’t anticipate a housing bubble, a gradual rebalancing could make bidding wars and list price bids less than the standard sellers expect towards the end of the year.
Atlanta’s inner suburbs, including Sandy Springs, Buckhead, Brookhaven, and Dunwoody, will continue to be extremely popular. These areas have historically attracted shoppers looking for the perfect balance between downtown convenience and a strong community vibe. And as stocks have become more scarce over the past 24 months, this has only increased the popularity of these sought-after communities. However, rising interest rates can undermine purchasing power, putting downward pressure on more expensive listings.
Predicting the market is a broad science, given the number of factors that influence our industry. And as we’ve seen over the past couple of years, it only takes one change in any of these factors to make a big difference in results. For example, the way the real estate market reacted to the pandemic was truly fascinating and impossible to predict. And with so many other factors at play, such as global trade, politics, and of course the effect of an evolving pandemic, the best thing we can do is continue to meet the needs of our customers even when ‘they change. The most important thing buyers and sellers can do is consult with a real estate agent to understand the impact of these factors on their local market.
Karen Cannon, Realtors Karen Cannon
Having been in the business for many years now, I generally have a good idea of the market and the direction it is heading, but there is nothing normal about the market that we have experienced this year. . The pandemic has caused an unusual disruption in the real estate market and changed what buyers usually look for in their homes. Based on what we are currently seeing and the forecast from market experts, we would expect prices to stabilize as stocks slowly rise. Prices are still very high and multiple offers are common. However, buyer fatigue is starting to set in, as buyers tire of bidding wars, get beaten up, or pay much more than what was “market value” a short time ago.
Homes that are renovated and ready to move in always have the highest prices. For a buyer, renovating a home right now with the rising cost of building materials and supply chain issues can be too daunting and risky. As a result, new construction is doing very well and getting the highest prices.
Although low stocks are the main driver of the current market, we can sense a change on the horizon, but it is difficult to predict how and when that might happen. There is too much of an imbalance between buyers and available homes, so I don’t expect something bad to happen anytime soon. Interest rates are expected to rise, although they will remain historically low. Even so, even if rates go up by half a percent, it dramatically affects purchasing power.
Nonetheless, we are always committed, regardless of the market state, to helping our buyers find homes and putting sellers’ homes in front of the right buyers.
Ashley Battleson, Bayne Battleson Group, Atlanta Fine Homes Sotheby’s International Realty
All current signs point to 2022 being another very strong year for the Atlanta real estate market. The average selling price of single-family homes increased 20% in FY2021 compared to FY2020. Inventories continue to be at historically low levels, buyer demand remains extremely high and rates are falling. interest remains low. All of these things create a hot market, but as a real estate agent that also makes it very difficult. The continued shortage of inventory will have an impact on rising home prices.
Robin Blass, Harry Norman Realtors
2022 will continue to be a sellers market, but with a few changes we won’t see the 24-26% price increase from the previous year. We will see a stable normal increase of 4-6%. Homes will continue to see multiple offers in a few areas if the home has the WOW factor and the price is right to start. Any house will sell if it is priced right. Buyers search for homes knowing they must be prepared to bid more than the list price. If the home is ranked highest to begin with, it limits the pool of buyers for the home and buyers move on.
The inventory of available housing will continue to be a challenge this year. We have less than a month’s supply. In a stable market, we would have a 2-4 month supply.
Buyers today are exhausted by home searches and continuous turndowns of offer after offer. Home buying needs will continue to fuel the market as many new home buyers enter the market and relocation buyers from all companies who choose Atlanta as their new home. This is all exciting, but we need more houses. We are seeing buyers really looking for that home that will be their home forever, for now. Location, schools and the community are very important in the buying process.
Interest rates, for now, are still excellent and even with the higher prices of homes, buyers can get a great rate and an achievable monthly payment. Now is the perfect time to buy. Loan options have evolved with many products from which the consumer can choose. Recently, the conforming loan amount has been increased, allowing a buyer to purchase up to $ 647,200 with a conventional loan. It’s enormous. My best advice is to be patient and always be prepared. This market is crazy.
Patti Junger, Dorsey Alston Realtors
Lack of inventory will continue to be a problem. New listings are down 5.2% year-to-date in the Metro Atlanta area, while the number of sales is up nearly 20%. This is an indicator of strong demand. This trend continues in all submarkets including Buckhead, Intown and Sandy Springs. We currently have less than two months of inventory in nearly all of the sub-markets in the Metro Atlanta area, where six months of inventory is considered a balanced market. Therefore, all indications are that we will continue to see a sellers market in 2022. The lack of inventory will continue to push prices higher over the coming year.
Here are some of the most expensive home sales of 2021 in the communities of Buckhead, Brookhaven, Dunwoody, and Sandy Springs. (Source: Staff Research, Realtor.com)
251 Valley Road NW, Atlanta, 30305
18 $ 100,000
Sold on 30/09/21
Seller’s Agent: N / A
Buyer’s Agent: N / A
165 Valley Road NW, Atlanta, 30305
Sold on 15/09/21
Seller’s agent: Studie Young, HOME Real Estate
Buyer’s Agent: Glennis Beacham, Beacham and Company Realtors
4295 Lakehaven Dr. NE, Atlanta, 30319
Sold on 25/02/21
Seller’s Agents: Kim Boyd, Betsy Akers, Atlanta Fine Homes Sotheby’s International
Buyer’s Agent: Giuliano Tornusciolo, Keller Williams Realty, First Atlanta
1539 Summerford Court, Atlanta, 30338
$ 1.520 million
Seller’s Agent: Karen Cannon, Karen Cannon Realtors Inc.
Buyer’s Agent: Dashondra Mashia, PalmerHouse Properties
4544 Peachtree Dunwoody Road NE, Sandy Springs, 30342
Sold on 11/08/21
Seller’s Agent: Gwendolyn McKinley, Corey Warren, GG Sells Atlanta Inc.
Buyer’s Agent: Veronica Smith, Solid Source Realty GA