It’s that time of the year in our real estate business when we like to look both back and ahead.
Realtor.com Chief Economist Jonathan Smoke named Atlanta, GA as one of the United States’ favorite cities for household growth and home sales growth! According to Smoke, We should see a 7% growth in total households over the next five years.
Greater than two thirds of this household growth in the next five years will come from “Millennials” … those folks born between 1981 and 2000. They’re starting families and just getting into the house buying mode. Affordable areas in the South will be prime targets for their purchases. Whoa, that’s us!
Compared to other markets Atlanta is affordable. Our First Multiple Listing Service reports that the Residential Attached Average Sales Price year to date through November was $194,317. This is an increase of 12% over the same time period last year but still a bargain in comparison to other cities.
Realtor.com further predicts that fixed mortgage rates will rise next year, up to 5%. Credit is often the name of the game, especially with these younger homebuyers. These are two factors that can continue to cause difficulties.
In October, I wrote about the demand for new construction. Sure enough, in 2015 more builders will start new homes, but there might be shortages of building materials and labor. We’ll be seeing fewer foreclosures and short sales.
And finally, right now there are also more sales associates entering the real estate field, making the choice of an experienced professional that much more important!
In 2015 put my experience to work for you! As always, I pledge the highest level of service.
Happy New Year, everyone!