The economy and the real estate market for Metro Atlanta continues to show signs of improvement. Jeff Humphreys from the University of Georgia’s Terry School of Business predicts that the Georgia economy will perform on par with the national economy in 2013. That is a change from his reports on the previous 3 years where Georgia performed lowered than the national economy. He also predicts that home values will rise 3% in 2013 and that many potential buyers will get back into the market before prices and mortgage rates rise to higher levels. Roger Tetterow from the Stetson School of Business and Economics at Mercer University agrees. He predicts that Georgia will begin to outperform the national economy as we see more progress in housing & construction, financial institutions and government. Metro Atlanta is adding net positive jobs again and growing in population according to the Atlanta Regional Commission. According to the U.S. Census, the 28- county region was the ranked #3 in growth from 2000 to 2010. Corporations see the opportunity and are moving to Atlanta. Baxter, Porsche and many others are taking advantage of our great values for business and housing.
The Metro Atlanta real estate market is also showing signs of improvement. Closed transactions are up 11% over 2011. Inventory is getting extremely low with most market down over 30% from last year and 50% from the previous year. Pre-Foreclosures and Foreclosures have slowed. Bank-Owned sales are outpacing the incoming volumes of Foreclosures so the overall inventory of distressed properties is shrinking – making resales and new homes stand out. We expect that we will see the banks be more aggressive in Short Sales after the election and into 2013. Short Sales cost them less to process than Foreclosures.
We also see heavy action from investors in the $50k to $200k price points. In general, properties with a good value proposition are selling fast. New home builders are slowly moving back into the business. We expect to see a steady rise in construction over the next few years. As home values rise, more builders will be able to make the math work and banks will start lending again. The outlook for residential real estate is slow and steady improvement with a few bumps along the way. Pending reforms for the mortgage system, changing tax policies and tackling our massive debt problems could have a major impact.
If you would like to see that latest stats for one of our local markets, click here to view a 90-second video market update. Contact us for additional information.