My 2008 Predictions for the “Local” Atlanta Real Estate Market
I may not be a real estate expert, but I believe what is currently happening in real estate markets across the country is what people have long known would happen, but didn’t want to admit. Up until recently real estate was a business in a field full of “part-time” licensed Realtors…it was a lucritive business relatively easy to be successful in even for an “average agent”.
Nobody really cared to question mortgage lending practices. Nobody cared to ask the question of how a home could appreciate so much while minimum wage and salaried positions saw little increase. We knew the answers, but didn’t ask the questions. Instead, people enjoyed the benefits of a “good” real estate market. A market in which people benefited from appreciation and took home equity loans and purchased vacations, cars, college education, etc. without thinking twice of the long-term impact.
The widely covered national news about real estate is just that…national news. My predictions focus on the local real estate market and I see quite a contrast when comparing the national real estate market to the local Atlanta real estate market.
First off, I am glad there was a housing slump in ‘07. I think ‘07 was a reality check for consumers and Realtors alike. Real Estate is a serious business, it was never meant to be a part-time job and ‘07 has uncovered this. The housing slump has forced many Realtors out of the business and those that remain are the individuals that have treated real estate as a business, not a hobby, and definitely not a way to make some “spending money”, no sir, those that remain are the ones that rely on real estate as their sole source of income and that is why they remain.
Secondly, the slump has forced consumers to see real estate from another angle. Pricing a home correctly is a science…it invovles running reports on sold listings, expired listings, currently listed properties…there are many factors that come into effect when developing a competitive market analysis. Numbers never lie and this is the driving force behind the real estate market. Consumers are best served when they select a real estate agent that is not just a sales or marketing person, but also someone with a strong understanding of statisical analysis. The slump has forced consumers to detach themselves from any feelings about their home and instead to look at the numbers and see what they say in regards to pricing a home.
Now the good news…my predictions for Atlanta real estate in 2008 with a brief explanation supporting my claim.
If 2007 was the year of awakening for Atlanta real estate, I view 2008 as the year of the rebound. Don’t think because I say rebound that things will go back to how they were, no sir, instead things will go back to the way they should have been. Here’s the funny thing about statistics (politicians are the best), no matter what the statistics are, they can always be spun to support a claim. I could do this, but I’m not going to here. I will simply state some basic facts and why these will help the Atlanta real estate market.
I don’t know if houses will continue to depreciate or appreciate. I do know this, the Atlanta market will rebound and I feel like it is already beginning to happen. Be realistic about the value of your home, don’t think, interpret…listen to a Realtor interpret the market to you and price your home accordingly. Business 101 teaches the concept of pricing a good or service at what the market can bare…same goes for real estate. We can all play a role in changing the market if everyone follows this simple rule. Don’t be greedy. Are you really losing $50K on your house or are you gaining $25K on your new house…remember, the market is affecting everyone (some more so than others).
The Atlanta market will rebound, unlike markets nationally Atlanta is the fastest growing metropolitan area in the United States as well as a leader in job growth. As businesses relocate to Atlanta so do employees. The more people moving to Atlanta the greater the demand is for housing. Simple supply and demand. As the Atlanta area grows the demand for houses will push prices of homes back up and help “stabalize and cultivate” the market.
Contrary to popular belief this is a great time to buy real estate for personal or investment reasons. If you are smart about your real estate transactions, the “hit” you feel on the sale of your current home is soon forgotten when you “buy-up” into a home you couldn’t have afforded a year ago. Interest rates are at an all-time low. I recently bought my first home in Roswell, GA it was a foreclosure and the appraisal came back $20K above my purchase price! Deals are out there…go find them!
Source:
Carl H. Martens
Internet Marketing and Operations Manager
Richterkessing, Inc.
Popularity: 64% [?]
Tags: atlanta real estate market, first time home buyer, foreclosure
January 28th, 2008 at 12:12 pm
The market is definitely more challenging than what we have experienced in the past here in Atlanta. However, we are fortunate that we have a business environment that crosses many industries unlike some other areas of the U.S. that are impacted by a dominent industry down turn. Having said that, pricing right is still the critical piece in getting homes sold today in Atlanta. Pricing just 3% over the market value can keep you from playing in the game! It’s back to the basics…condition, price, and location coupled with a top Realtor and an aggressive marketing plan gets homes sold.
January 28th, 2008 at 12:17 pm
Bravo! This is exactly the time we shouldn’t allow our emotions run the show with regard to what is portrayed by the media. Now it is more important than ever to choose your real estate agent wisely and get detailed information from the trenches where it really counts. Do your homework and you may find yourself involved in the best investment you have ever made!
January 29th, 2008 at 9:18 pm
I think the lending industry needs to take a good look at itself and do an examination of how they have allowed unethical practices to pervade. Their trade organizations should spend more effort on promoting ethical standards and self police than lobbying politicians in the Statehouses and in Washington! Is there an accredidation process for lenders?
July 27th, 2008 at 5:25 pm
Only time will tell. 2008 may be a little too early for a rebound. However; Atlanta is a very large market and as long as corporate job growth is sound the market should be ok. The problem arises when companies and the citizens depart the city in search of other jobs elsewhere. If that occurs then there may be a problem.