A Tale of Two Real Estate Markets

Recently, someone commented on one of my videos saying, "Nobody is buying, stop lying," which made me laugh because despite what this person says, people are still buying houses. If they weren't, I wouldn't be sharing my stories about working with buyers and sellers day in and day out. However, we are experiencing a slowdown in some areas while others are moving full steam ahead.

Real estate is in a very volatile position right now. There are some markets across the U.S. that are down significantly, and others that haven't seen a slowdown, with people buying and selling at the same rate as in the past three years. It's impossible to make blanket statements about our market here in the Northeast Metro Atlanta area because things are drastically different depending on which area you're talking about.

Hot Markets:

Let's start with where things are still hot. In Alpharetta, the median days on the market is just eight days. Most homes go under contract in just four days. People still want to be in this area for its great schools, proximity to Atlanta, shopping, restaurants, and jobs. The demand here is not slowing down anytime soon. We've seen a large increase in inventory in Alpharetta recently because sellers know they still have the upper hand. More homes on the market right now is good because we're in an inventory shortage.

In John's Creek, one of the most expensive towns in our area, the median days on the market is only seven days. People are still moving to these areas and paying a premium for homes for all the same reasons they have been over the last few years. They see these homes as a quality investment.

Slower Markets:

If we look at Gainesville, the median days on the market is currently 24 days, and in Braselton, it's up to 34 days. This doesn't necessarily signify a market slowdown; it's more of a return to a normal market. Overpriced homes that don't have the quality to support their price aren't going to sell if the price isn't in line with the quality and comparables in the area. Buyers are being more cautious due to higher interest rates and are more critical of their purchases.

Just because homes are sitting on the market longer doesn't mean they won't sell for a good price or won't have competition. A good house is still a good house, even if the overall market has had a slight drawback. For example, I had clients looking for a home on acreage under $425,000. A home that fit all their criteria was listed at this price and had a ton of interest after just one day on the market. Despite the competition, my clients wanted to make a lower offer. I had to explain that in such a hot market, a lowball offer wouldn't be accepted.

This situation reminded me of clients back in 2020 who waited for prices to fall, thinking they could get a better deal. Fast forward to today, those homes they looked at for less than $375,000 are now easily $500,000. Waiting for prices to fall is not supported by market trends.

Advice for Buyers:

As a real estate agent, it's my job to tell you the truth so you can make a well-informed decision. Sometimes that involves readjusting your expectations of what you can buy in this market. If you're planning to stay in your next home for 10+ years, it's a great decision to buy now, even if it feels like you're overpaying. Spending $40,000 in rent over the next few years would be better spent on a home that fits your needs.

If you need to negotiate on the price or ask for closing costs, target homes that have been on the market for at least two weeks. This shows the seller they have missed the mark price-wise and are more likely to negotiate.

Foreclosure Misconceptions:

Another misconception is that we will see a sudden influx of foreclosures. If someone falls behind on their mortgage, they likely have enough equity to sell and walk away with money. We are not going to have a ton of cheap homes hit the market. We are still at historically low inventory levels, and until we reach normal levels, home prices won't fall. Experts and economists predict that this sudden influx of inventory is nowhere near happening within the next five years.

Keypoint

It's crucial to weigh the pros and cons of staying where you are or making a move. Are you happy with your current space? Does it meet your living needs? If you're planning to be in your next home for a long time, buying now can be a great investment. If you're thinking about making a move to the Metro Atlanta area, I want to be your real estate agent. Reach out to me using the link below to book a strategy call, and we'll figure out the best plan for your move to Georgia.