Buying and Selling in this market is tough but not nearly impossible! Having an agent by your side will give you that advantage you need. When you buy, you are at a slight advantage because of how few buyers there are. You have some leverage when it comes to your offer. When you are selling, buyers aren’t as quick to buy but they are still out there looking. As long as you price your home correctly, and become flexible with the offers. You will sell your home in no time.
We are all used to hearing about how we are currently dealing with one of the biggest seller markets in modern history. However, it’s important to remember that the real estate market has an ebb and flow just like any other commodity market. To gain a better understanding of how home prices could be affected in the near future, let’s look at how the changing market is impacting home sellers in Atlanta.
Supply and Demand
Out of all of the factors that are impacting housing prices, supply, and demand seem to remain the largest contributor.
Throughout the global pandemic, we have seen both supply and demand ping pong back and forth, but supply has almost always stayed well below demand. This imbalance has buoyed prices during the entire pandemic sending some property values skyrocketing.
As time has gone on, the number of houses available for sale has increased very slowly, but they have a tendency to get snatched up by the immense pool of buyers — some of which have patiently waited years for a suitable home to hit the listings. Demand is very gradually diminishing but it’s going to take some time before the demand lowers to the point of necessitating prices to come down as well.
Shifting Interest Rates
Something that has assisted in putting the brakes on the seemingly unending stream of buyers (and contributing to the changing market) has been increasing interest rates.
The Federal Reserve has raised interest rates three times in recent memory, and they are attempting to avoid any further increases. The reason increasing interest rates negatively influences the buyer pool is that it tightens guidelines from mortgage lenders. Since it becomes more difficult to get approved for a mortgage, fewer people are financially able to successfully purchase a home.
The quick and easy way of looking at this is that increasing interest rates have an immediate cooling impact on the entire real estate market. Despite losing some potential buyers, the remaining buyers have not lost any of their motivation. There are still plenty of buyers out there who are willing and able to buy a home as soon as possible.
Cost of Living
Besides loan interest rates and qualifications both increasing by quite a bit, the everyday cost of living has also gone up, which is adding to the changing market conditions.
It’s no secret that we are seeing escalating prices on groceries, gas, utilities, and every other little expense that quickly adds up. Where increased interest rates reduce the number of buyers because lenders are being more conservative in their lending, an upsurge in the everyday cost of living will force some buyers to completely reevaluate their capability for purchasing a home.
If nothing else, higher living expenses will lead to buyers scaling down their home-buying plans and it will send them back to the listings to start their search from square one and brave the changing market in Atlanta.
Be Prepared for Aggressive Buyers
Of the buyers that are able to stick around and continue their search unimpeded, they will enter into negotiations ready to make a quick deal.
Buyers that have been around over the last few years have become familiar with bidding wars and they will be ready and willing to sweeten their offer to win you over. These buyers have experienced one of the most competitive and unforgiving real estate markets in a generation.
To complicate things for buyers even further, internet wholesalers and local investors have been making a mint by swooping in to pick up a property quickly and flip it as quickly as possible.
Your Professional Guide Through a Changing Market in Atlanta
Times are uncertain right now, and it’s scaring a lot of buyers and sellers. Don’t let the shifting market conditions get the best of you! If you want professional guidance to help you navigate the changing market in Atlanta, contact us today at 770-280-4560!
As an expert in the real estate market, I am excited to share this video that discusses how the changing market conditions are affecting buyers and sellers. The creator of this video is an experienced real estate agent who runs a YouTube channel to educate people on the industry. In this video, the creator discusses the impact of the changing market conditions on both buyers and sellers, and how they can navigate through it.
Creator Bio: The creator is a real estate agent with years of experience helping clients buy and sell homes. Their YouTube channel is dedicated to educating people about the real estate industry, providing tips and advice on everything from buying a home to preparing a property for sale. You can find more of their videos at their channel: https://www.youtube.com/channel/UCJrWRbxDf6GjZ6SLNrtoMjg
Key Takeaways:
- Buyers: Higher Rates and Smaller Competition The current market conditions have resulted in higher rates for buyers who are looking to finance a home. However, the competition has decreased significantly, which means that buyers have a better chance of finding their dream home without competing with too many other buyers.
- Sellers: Smaller Buyer Pool, Less Competition, and Negotiations Sellers are affected by the smaller buyer pool in the current market, which means they need to be more open to negotiating on conditions or concessions. However, the low inventory of homes for sale means that sellers will face less competition, making it easier to attract buyers to their properties.
- No Drastic Drop in Prices. The expert in the market does not predict a drastic drop in prices. While there may be some pullback from the appreciation of the last few years, the value of homes is still high.
- The Importance of Taking Action Don’t wait for the market to change in your favor. If you’re not happy with your current home or if you’re looking to buy a home, it’s important to take action now.
- Change is Natural in Real Estate The real estate market goes through changes all the time, and this is a natural progression that everyone should expect.
Quotes from Me:
- “Change is hard, and it has a lot of bumps and bruises along the way, but this is a natural progression that real estate has gone through forever and ever and ever.”
- “Don’t get frozen and think that the market is shut down, nothing is happening, and I’m going to wait until I don’t know what. I don’t know what people are waiting for.”
Personal Best Advice: As an expert in this niche, my best advice for buyers and sellers is to work with a trusted real estate agent who can guide you through the market’s changes. Be open to negotiating, but don’t compromise on what’s important to you. If you’re a seller, take the time to prepare your home for sale to make it as attractive as possible to potential buyers. If you’re a buyer, take advantage of the low competition and lower rates to find a home that you love.
FAQ:
- Are interest rates higher for buyers in the current market? Yes, the interest rates for buyers who need financing are higher than in previous years.
- Are there still buyers in the current market? Yes, there are still buyers in the current market, although the buyer pool is smaller than before.
- Will there be a drastic drop in home prices? Experts do not predict a drastic drop in home prices, although there may be some pullback from the appreciation of the last few years.
- Should sellers be open to negotiating conditions or concessions? Yes, sellers need to be more open to negotiating