North Georgia Real Estate – February 2017
March 10, 2017
Low Inventory Limiting Options for Many Buyers
As we ride in to the Spring selling season the North Georgia housing market is experiencing a crisis of sorts. Population growth, rising interest rates and relaxed mortgage qualifications have increased buyer traffic, outpacing the number of properties available in many price segments. Lots of buyers are good, right? For sellers, this is great news! The potential for significant buyer interest in your home and even multiple offers to purchase is high. For buyers, not so much. Most communities in North Georgia continue to have a low inventory of homes for sale, meaning options for buyers are limited and what is available is often being considered by another buyer, sometimes several.
Look at the graphics below. You can see that Georgia ranks strong in buyer traffic while also weak in available inventory.
Now let’s look at those rising interest rates. For the last several years we have enjoyed historically low interest rates. Those low rates had great impact on speeding up recovery from the housing market crash experienced just a few years ago. As with all opportunities, they don’t last forever. Rates are on the rise and here are the projections from top experts in the mortgage industry. Let’s keep things in perspective though. Yes, mortgage rates are on the rise, however, they are still great rates!
What does this all mean for North Georgia Real Estate in the coming months? Short term, it means that prices will continue to increase as demand continues to drive them upward. It also means that entry level buyers will have more of a challenge finding a home and will be facing some stiff competition.
If you are a buyer right now, be patient. Traditionally, inventory increases in the Spring and Summer months. Be sure that you are ready to make a quick decision if you find a home you like. Be prepared to pay asking price with limited seller concessions (remember you are likely competing against another buyer with your offer). Be pre-qualified with a lender BEFORE you go out looking with your REALTOR®. Preparing up front can make a big difference in your ability to have the seller choose your offer over another.
If you are thinking of selling, now is the perfect time! With many buyers having a difficult time finding the right home for them and little to choose from, your home could be exactly what they are looking for. As the Spring and Summer month’s approach, more and more sellers will begin listing their homes for sale. The sooner you list the better the opportunity you will have to sell quickly and at great price. Remember…PRICE, CONDITION, LOCATION and EXPOSURE are the magic formula for a great selling experience!
Below you can download the detailed market report for February specific to your city/town. If you do not see yours listed please contact us and we will be happy to provide one for you, if available.
As always, real estate is local and fluctuates home to home, neighborhood to neighborhood. We are happy to meet with you for a personal assessment of your home or to help you find the best property to call home. We look forward to hearing from you!