But the market does not even have a range of prices, he said. “The competition is hyperactive in the $ 400,000 price range and below.”
This is because young professionals are more interested in homeownership. Rising prices are bad news for them.
The average listing price of a Metro Atlanta home is up 28% According to Realtor.com in the last two years.
Many first-time buyers struggle to put together the amount that many lenders need for a down payment. Moreover, wages and salaries have risen steadily over the past several years, but not at double-digit speeds.
The recent jump in mortgage rates is expected to cool the market, mainly as demand cools.
And for some wannabe buyers who are expanding to get a home, the change is painful. The 30-year, fixed-rate mortgage was 2.77% last summer and 3.11% at the end of December, but is up more than 5% since mid-April.
The increase can add hundreds of dollars per month to mortgage payments.
In the meantime, the purchase price is also rising. This is because higher rates have not yet reversed the supply-demand equation. For many years, the supply-demand balance has been tilted further to the seller’s advantage. And while higher mortgage rates mean fewer bidding wars and fewer purchases that exceed the asking price, there are still more buyers than sellers.
In a market where buyers and sellers have roughly equal negotiating power, the number of homes listed for sale – supply – must equal six months or more of sales. For a number of reasons, however, supply has historically declined, forcing buyers to bid against each other as prices soar.
Last month, according to Re / Max, the number of home listings represented less than a month’s worth of sales.
For first-time buyers, the situation is even worse than what it looks like, according to Kristen Jones, owner of Re / Max in Atlanta. Relatively few homes have sold overall, but the shortage is severe at the lower end.
“That means many buyers are out of the market,” he said. “There’s not enough inventory to cause major change in the market.”
Atlanta continues to draw transplants across the country.
But during the Great Depression of 2008-09, housing was virtually frozen and lost ground. Meanwhile, many homeowners have chosen to keep, some of whom fear they cannot afford another home.
According to experts, it was years before the market was flat.
In the meantime, sales have been a little cold so far this month, but it’s not just rising prices, Jones said. “It’s primarily a seasonal trend with the end of school and the beginning of summer.”
Metro Atlanta, Real Estate Market, May 2022
Average selling price: $ 400,000
Compared to April: + 3.9%
Compared to May 2021: + 23.1%
Number of home sales: 9,611
Compared to April: + 7.5%
Compared to May 2021: -8.5%
Average list price: $ 412,000
Compared to April: + 3.0%
Compared to May 2021: + 17.7%
Metro Atlanta, Medium Housing List Price History
From May 2021: + 9.8%
From May 2020: + 27.8%
From May 2017: + 51.5%
Metro Atlanta Average Home Price History
Reaches $ 400,000: May 2022
Reaches $ 300,000: March 2021
Reaches $ 200,000: May 2015
Average rate, 30 year mortgage
Monday afternoon: 5.58%
5.2% in mid-May.
More this year: 5.78%, the first week of June
Sources: Re / Max National Housing Report, Zillow, Federal Reserve Bank of St. Louis, Freddie Mac