It is my job to closely monitor the Metro Atlanta real estate market and to deliver the news to my clients. Some times the news is bad, such as telling a home seller that their neighborhood is loosing value because of foreclosures and that they will not be able to sell this year for the price their neighbor sold for last year. Other times the news can be good, such as telling a seller that a fully qualified buyer has made a FULL PRICE offer on their home and would like to close by the end of the month.
No matter what, my job is to be honest and to present the facts to buyers and sellers as clearly and objectively as possible. Sometimes the truth hurts and other times the truth serves as a relief but in either case – it is what it is.
Now here is the truth for any potential homebuyer. ‘Tis the season to buy! True enough, I am a realtor and we are trained to say that but here is the main reason that now is a great time to buy a home. Inventory!
When I was in college, I struggled with a business course – MacroEconomics. One of the main tenants of econ is the law of supply and demand. When supply is low and demand is high – prices rise. When supply is high and demand is low – prices fall. In Atlanta, the demand has held steady over the past several years but recently supply has increased. There is just a ton of inventory in the new and resale markets. People are still moving to Atlanta in steady streams but our supply has just exceeded the demand right now.
As we all know Atlanta has one of the highest foreclosure rates in the country and likewise we also have a steady stream of people in pre-foreclosure. Once these numbers are added to the people that want to sell for other reasons such as relocation, upsizing, downsizing, etc. – the market is flooded with houses.
‘Tis the season to buy! I am going to spend the next several posts discussing issues in the homebuying process and then I will focus on helping those who want to sell in this market. It can be done.