Real Estate Market Shift - Is it upon us?
When the real estate market takes a turn or "Shifts" people are typically not really concerned, unless of course you currently have your home for sale or are considering putting your house on the market.
Let me be the first to tell you that a shift in the real estate market should be a concern to you because even if you are not moving the ability to refinance or get a home equity loan could affect you in a negative way. The market also will have an impact on economic growth, job creation or loss and many other factors that will have an impact on each of us.
Signs of a real estate shift start out small and you barely notice them unless you are being mindful of what to look for. However, a real estate shift is like going bankrupt. Going bankrupt does not happen overnight. It starts out small and then starts to get worse and worse until finally, it happens all at once.
Please know I am not saying we are in any way in crisis mode but the real estate market is shifting in Atlanta and you need to be aware of it. From a Sellers and buyers point, you need to be paying attention to what is happening.
Take a look in your neighborhood. Are there more properties for sale than usual? What about the homes that have recently sold? Did they take longer to sell than in the past and if so, what concessions did sellers have to make to attract a buyer and make the sale? Did the homes that did sell, have to lower the sales price to get a buyer to purchase their home?
Caution signs that the local real estate market is shifting:
1. Homes on the market are taking price reductions (some of them drastic).
2. Homes are staying on market longer (Days on Market)
3. Appraisal values are coming in lower than the contract price.
4. Buyers are asking the sellers to pay for 2-3% of the purchase price in inspection item repairs or credits and are walking away from deals if they don’t get them.
5. More buyers are terminating contracts for no apparent reason or cause.
6. More contingent offers being accepted.
7. Fewer multiple offer situations.
8. Buyers are able to find a house they like due to an increase in inventory.
9. Buyers are requesting more Seller assistance with closing costs.
10. Investors stop trying to buy and flip homes.
Don't say I didn't warn you. In my opinion, the Atlanta market is shifting no matter what you read or hear from the media. New home building is a dragging indicator so do not base the current market off new home sales or construction. Home price increases are a lag indicator and we can only deal with where we are not where we were just a few months ago. This shift is partly seasonal, but the market is moving.
Remember, though, there is never a bad market. If a market is good for Buyers it is bad for Sellers and vice versa. If you are a seller, you can’t expect to get the same things from buyers that you did a few months ago. If you are a buyer....your window of opportunity is NOW.
Curious what your home may sell for? Click Here for a free market analysis of your homes value.
Looking to buy and want to see what’s available in your area? Click Here.
Just want more information on the local real estate market from one of the leading real estate teams in the area, call us at 678-775-2787 and let’s talk.