Is It a Good Time To Sell Your Property In Atlanta This 2021?
The past few years we have seen the progressive changes in Atlanta. It has become one of the most sought after places to settle down and live in. From good weather in all seasons to affordable urban living, it is no wonder why people want to live in Atlanta. As a result, many companies around the globe also relocated to Atlanta and its surrounding towns in order to ride with the booming economy of the city.
Furthermore, because of the observed growth of Atlanta in the past years, there is an increasing number of people who are investing in properties in the city. More and more owners are selling their assets for a really good price. With that, if you are wondering if it is a good time to sell your property in Atlanta this 2021, then you should definitely continue reading!
What is the current market like in Atlanta?
The March 2021 Market Trends on residential housing statistics for 11 area counties in Metropolitan Atlanta was recently released by Atlanta REALTORS® Association (ARA). THe posted report covers areas including Cherokee, Clayton, Cobb, DeKalb, Douglas, Forsyth, Fulton, Gwinnett, Fayette, Henry, and Paulding. Here are the primary housing statistics discussed and covered in the market trends:
- Demand in Housing
An increase of 7.3% from the previous year was noted in March this year when residential sales hit 6,952. The number of homes sold in March ranged from 1000 to almost 2000 in each county. Using this data, it is more likely that home sales will still increase in the peak buying season during the summer. Furthermore, because of the significant impact of the pandemic and the application of the work from home set-up, experts on market trends say that there would be more home sales in suburban areas in the next coming months compared to home sales in big cities.
- Home Prices
There is an observed sustained upward trend in Atlanta home prices. The increase in the average and median home sales prices is due to the high demand in housing property that is met with low inventory and a constrained housing market The result of this supply and demand disparity is an increased home prices that continue to gain traction and outpace 2020’s figures with positive gains. Market studies have shown that there was about 15.8% increase from last March of 2021 in the median sales price of houses in Atlanta. Furthermore, the average sales price grew at a comparable rate of 15.9%.
- Housing Supply
Market studies have shown that the metro Atlanta housing market has always had an inclination in favor of sellers for many years now. This is further aggravated due to the shortage of homes, especially during this pandemic. In March of 2021, housing inventory in the Atlanta area showed a total of 7,426 properties which is a decrease of about 55.8% from the same month of last year. Furthermore, new listings decreased 7.4% March 2020 and increased for about 25.4% from the recent months in 2021. However, the month’s housing supply over a 12-month period decreased to 1.1 months. All of these numbers indicate that sellers still cannot meet buyer demand. Market experts only find the market balanced when the number of listings is equal to about six months of sales, which in this case is not yet reached.
- Listing Prices
The ARA April 2021 report has found out that Atlanta is a seller’s real estate market. This means that there are more people looking to buy than there are homes available in the city. As stated above, home prices have been increasing significantly because of sparse supply and strong competition for available homes. Market research shows that the median list price of homes in Atlanta is approximately $379,900 with a growth trend of 16.9% every year while the median sale price was about $345,500. The median listing price per square foot was $248.
Preferably, a buyer would like a sale to list price ratio that is somewhat closer to 90% while a seller would always prefer situations that can produce a ratio of 100% or higher. In Atlanta, there is a 100% Sale-to-List Price Ratio. This means that properties in Atlanta sold for approximately the asking price on average in the past few months. This finding of market research is really looking good for the sellers of properties in Atlanta.
Real Estate Market Forecast of Atlanta in 2021
Market studies have shown that Atlanta is becoming one of the peak real estate markets in the US now. In addition to that, for the past few years, Atlanta has shown to be one of the hottest real estate markets for investing in rental properties. This may be attributed to the significant population growth that resulted in a positive change on the Atlanta housing market. According to the most recent data from the U.S. Census Bureau, there were about 285,000 people moved to Georgia in 2019.
Due to the ‘best state for business’ rankings of Georgia, more and more people are interested in moving to the state. In addition to that, due to the fact that a number of Fortune 500 companies have operations in Georgia, many citizens around the country choose to move in the region. Also it must be noted that other than the strong business environment in Atlanta, many are driven to move due to the relative affordability of the city. Its vigorous science-based economic ecosystem captivates novel talent to the city. With that, the net movement into the city has led to an ever-increasing demand for housing in Atlanta which cannot be met with the present speed of construction.
As stated above, there has been increasing prices in the Atlanta housing market for the past few years due to the housing shortage. This shortage of housing is foreseen to continue to contribute in the next following months and years which then results in even further increases in housing prices. It must be noted that Atlanta home prices on average are less expensive than the US average. However, despite this, Atlanta home prices have significantly increased since 2012, and market projections say that it will still continue to increase.
The typical home value of homes in Atlanta is presently priced at about $319,306. It indicates that 50% of all housing stock in the city is valued greater than $319,306 and 50% is valued less, which is adjusted due to seasonal fluctuations. Market research has shown that the typical value of homes in Atlanta was around $293,000 in May 2020. With that, Atlanta home values have seen an increase of about 8.7% over the last twelve months. Furthermore, market data also shows that Atlanta real estate appreciated by almost 75% over the last ten years. Its yearly appreciation rate has been averaging at approximately 5.7%. This number puts the city in the top 10% nationally for real estate improvement. During the last twelve months, the Atlanta appreciation rate was almost 6%, and in the latest quarter, the appreciation rate was about 2.21%. If it remains stable, it will increase to a rate of 9.14% by the end of 2021. This increasing rate in the Atlanta housing market is foreseen to be the trend for 2021 and next following years.
So is it a good time to sell your property in Atlanta this 2021?
Many of the real estate markets around the globe suffered great losses due to the pandemic in 2020. However, unlike the rest of the world, the real estate market in Atlanta actually did very well in the previous year. It has been observed that sellers got bigger profit margins in Atlanta compared to other cities and states all over the country. What is even more exciting is that this trend is expected to continue in 2021. In fact, market research has shown a significant increase in housing values.
So to answer the question, yes it is a perfect time to sell your Atlanta property, especially that there is still a very high demand with limited supply of properties in the real estate market. It is true that the real estate market changes all the time, and taking advantage of the change that Atlanta is experiencing these times is the best way to get the most out of your house sale. You can be assured that there will be plenty of people interested in your Atlanta home in 2021. So if you are thinking of letting go of some properties, Atlanta home prices are in a exciting state right now if you are looking to sell.
References:
- Atlanta Realtors Association. 2021. Atlanta REALTORS® Market Brief: March 2021. Retrieved from: https://www.atlantarealtors.com/resources/atlanta-realtors-market-brief/detail/atlanta-realtors-market-brief-march-2021. Retrieved on 29 May 2021.
- Norada Real Estate Investments. Atlanta Real Estate Market: Prices | Trends | Forecast 2021. Retrieved from: https://www.noradarealestate.com/blog/atlanta-real-estate-market/. Retrieved on 29 May 2021.
- RoofStock. 2021. The Atlanta Housing Market: Still a Smart Investment in 2021?. Retrieved from: https://learn.roofstock.com/blog/atlanta-housing-market. Retrieved on 29 May 2021.
- The Atlanta Journal-Constitution. 2021. Here’s How Hot The Atlanta Housing Market Is Right Now. Retrieved from: https://www.ajc.com/life/private-quarters/heres-how-hot-the-atlanta-housing-market-is-right-now/7F45RYVSQRAPVIIXOX6PEWHXQU/. Retrieved on 29 May 2021.
