Remember when we talked about the Atlanta market throwing us a Greg Maddux-style changeup? Well, it seems we're now witnessing a fastball right down the middle for investors, while tenants might be feeling like they're facing a nasty curveball. Let's break down the latest market dynamics that have us more excited than a Braves fan during a playoff run.
Pending Home Sales: The Comeback Kid
Just when we thought the market was cooling faster than a July snowcone, pending home sales got a pleasant surprise. In a recent NAR article it highlights nationwide, we saw a 4.8% increase, with the South leading the charge at a whopping 6.3% boost. As talks of a rate decrease many buyers have decided now is the time to start making some moves.
Let's break down the numbers:
• Northeast: Up 3.0% to an index of 65.5
• Midwest: Jumped 4.7% to 73.7
• South: Surged 6.3% to 89.3
• West: Climbed 3.4% to 58.4
Our beloved South isn't just leading; it's dominating like the Braves in a pennant race. With an index of 89.3, we're seeing the kind of activity that makes other regions green with envy.
NAR Chief Economist Lawrence Yun hit the nail on the head, saying, "The rise in housing inventory is beginning to lead to more contract signings." It's like we've been in a real estate drought, and suddenly, the rain's started to fall.
This surge suggests that buyers are adjusting to the new normal of higher rates, or perhaps they're anticipating the Fed's potential rate cuts. Either way, it's a clear signal that demand is heating up faster than asphalt in an Atlanta summer.
But here's the kicker - Yun predicts even more inventory coming to market in the months ahead. He says, "It is a good time to list." For investors, this could mean a double whammy of opportunity: rising demand and increasing supply.
Remember, though, pending sales are just that - pending. They typically take a month or two to close. So, we'll be watching closely to see how many of these contracts make it to the finish line. But one thing's for sure - the market's pulse is quickening, and smart investors are already lacing up their running shoes.
BOOM!! Atlanta’s 1.29 TRILLION DOLLAR Flex (yes with a T)
A bit of a shock to us but Atlanta is officially in the Trillion Dollar Club, with our metro area's total home value hitting a staggering $1.29 trillion. We're now the #3 market by value in the entire country, trailing only New York City and Los Angeles. It's like we've gone from being a regional powerhouse to a national real estate superhero!
Let's put this astronomical figure into perspective:
• Atlanta's housing market value grew by 5.1% year-over-year, adding a whopping $62.3 billion to our total.
• We've leapfrogged other major metros like Chicago ($1.08 trillion) and Washington, DC ($1.05 trillion).
• Our growth rate outpaced the national average showing that Atlanta is not just growing, but accelerating.
This meteoric rise isn't just bragging rights – it represents tangible wealth creation for homeowners and a robust foundation for future growth. For investors, it's a clear sign that Atlanta remains a prime market for long-term appreciation.
But what's driving this surge? Several factors are at play:
1. Population Growth: Atlanta's population continues to boom, with the metro area expected to add nearly 2.9 million residents by 2050, according to the Atlanta Regional Commission.
2. Economic Diversity: From tech startups to Fortune 500 headquarters, Atlanta's diverse economy is attracting high-paying jobs and wealthy residents.
3. Infrastructure Investments: Projects like the Atlanta BeltLine and ongoing MARTA expansions are making the city more livable and connected, driving up property values.
4. Relative Affordability: Despite our growth, Atlanta remains more affordable than coastal metros, attracting both residents and investors seeking value.
For investors, this trillion-dollar milestone signals several opportunities:
• Appreciation Potential: With strong fundamentals driving growth, properties in Atlanta have significant upside for long-term appreciation.
• Rental Demand: As the population grows and housing costs rise, demand for rentals is likely to increase, benefiting landlords and multifamily investors.
• Value-Add Opportunities: In a market this hot, there's still room to force appreciation through strategic renovations and improved management.
Remember, a rising tide lifts all boats, but some boats rise higher than others. The key is identifying which neighborhoods and property types are poised for the most growth. That's where our local expertise comes in handy. But as home prices rise we also expect rental rates to rise meaning bad news for tenants hoping to keep rents lower. As forced appreciation for cash flowing assets should get a double whammy of appreciation and income increases in the future.
Featured Listings
Speaking to the added inventory and pending properties in the last month we have added a select few deals to our feature properties to our website.
Head over to https://www.listtosellatl.com/ and scroll down to our Featured Properties section. You'll find a treasure trove of investment opportunities, each with its own unique potential.
Closing thoughts: The Investor's Playbook
So, what does all this mean for you, it’s the advice we give to our valued clients. Here's the game plan:
1. Act Fast: With demand picking up and supply tightening, the best deals won't last long. If you've been fence-sitting, it's time to make your move.
2. Focus on Appreciation: Atlanta's rising market value suggests strong long-term growth potential. Look for properties in up-and-coming neighborhoods that could ride this wave.
3. Consider Value-Add Opportunities: With prices rising, finding ways to force appreciation through renovations or better management could yield outsized returns. We have found some of the best deals with the strategy
4. Explore Build-to-Rent: With Atlanta ranking 3rd nationally for BTR units under construction, this could be a prime opportunity to get ahead of the curve.
To your investing success,
PS: If you want to chat with our team about adopting any of these strategies above we offer a free consultation call book a time here (Call Link)
