The Atlanta housing market is perennially one of the hottest in the nation and this year is no exception. It’s also very expensive compared to the rest of the Southeast.
As you may know from our Atlanta housing market forecast, this year homeowners may face increased home prices, mirroring a national trend. Average home values in the metro Atlanta area are expected to rise by as much as 6%. However, not all locations will experience this trend; depending on the neighborhood, town, village, and subdivision, some homes may see price drops.
Despite this, there are signs of concern in the U.S. housing market, as noted by Realtor.com:
- The number of homes actively for sale has decreased by 2% compared to last year.
- Unsold homes have decreased by 3.7% compared to last year.
- The median price of homes for sale in October 2023 remained stable compared to the same time last year.
- Homes spent an average of 50 days on the market, which is one day shorter than last year and more than two weeks shorter than before the COVID-19 pandemic.
Why Is the Atlanta Housing Market So High?
There are several reasons why the Atlanta housing market is expensive. Let’s explore a few reasons why:
Low Inventory, High Housing Demand
High demand for housing, driven by factors such as population growth, job opportunities, and low mortgage rates, can lead to higher prices, especially in areas with limited housing supply.
In many parts of the country, there is a shortage of homes for sale, which can drive up prices as buyers compete for available properties.
There’s also the issue of land cost. The cost of land for new construction can be high, particularly in urban areas where space is limited, leading to higher home prices.
Construction Costs
The cost of building materials, labor, and regulatory requirements can make new construction expensive, which can contribute to higher home prices.
Government policies, such as zoning laws and building regulations, can restrict the supply of housing and drive up prices.
Low Interest Rates
When interest rates are low, it can make borrowing for a home more affordable, which can increase demand and lead to higher prices.
Economic factors, such as strong job markets and wage growth, can increase demand for housing and contribute to higher prices.
So what does a prospective homeowner do, knowing that the housing market has basically priced them out? You try to save money.
How To Save Up For a Home
Saving up money for a house requires careful planning and discipline. Here are some steps you can take to save up for your future home:
Set a Savings Goal: Determine how much money you need to save for a down payment and other homebuying costs. This will give you a target to work towards.
- Create a Budget: Review your income and expenses to identify areas where you can cut back and save more money. Allocate a portion of your income specifically for your house savings goal.
Read our guide on how to save up for a home.
Final Word
Real estate is often seen as a safe investment, leading to increased demand from investors, which can drive up prices.
Overall, a combination of factors, including supply and demand dynamics, construction costs, government policies, and economic factors, can contribute to the high cost of housing in the U.S.
Not to mention that the city’s dining scene is the best in the Southeast. Looking for a home? Check out our Real Estate Resource Page.
Keep up with what’s going on in Atlanta’s real estate scene here with our Apartment Guide.
See The Latest Atlanta Real Estate News At AtlantaFi.com.
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