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.
Why NO ONE Is Moving to ATL (Where They're Moving Instead)
Despite Atlanta’s vibrant culture, rich history, and booming economy, many people are opting out of moving into the city itself. Instead, they’re choosing the suburbs. The allure of larger homes, better schools, and quieter neighborhoods is drawing families away from Atlanta. Here’s a deeper look into why this trend is happening and where people are moving instead. Rising Cost of Living One of the biggest reasons people are choosing the suburbs over the city is the cost of living. Housing prices and rental rates in Atlanta have risen significantly, making it difficult for many to afford a comfortable lifestyle within the city limits. For those seeking a bigger home with yard space, the city’s options are limited and pricey. Smaller homes, townhomes, and condos in the city can range between $300,000 to $400,000 but often lack the space that families need. In contrast, the suburbs offer more affordable housing options. Families can purchase larger homes with more land for the same price or even less than a smaller, less desirable property in the city. This makes the suburbs especially appealing to those with pets and children who need space to play and roam. Safety and Quality of Life Safety and quality of life are crucial factors driving people to the suburbs. Many people perceive the suburbs as safer, with lower crime rates compared to the city. This perception draws families, particularly those with children, to the quieter, more relaxed environment of suburban areas. Neighborhoods in the suburbs are often designed to attract young families with amenities like pools, tennis courts, and playgrounds. These features create a sense of community that is particularly valuable for families new to the area who want to feel connected with their neighbors. Better Schools Another significant factor is the quality of education. While Atlanta has some great schools, many of them are private and located in expensive areas. In the suburbs, families can find excellent public schools that offer smaller class sizes, better facilities, and more extracurricular opportunities. These suburban schools often receive more funding, contributing to a higher quality of education. Traffic Congestion Atlanta’s notorious traffic congestion is another reason people are avoiding the city. The daily hassle of dealing with heavy traffic can be a significant deterrent for those considering a move. The suburbs, on the other hand, provide a more manageable commute, especially for those working outside the city center. Popular Suburban Areas The suburbs surrounding Atlanta are often divided into ITP (Inside the Perimeter) and OTP (Outside the Perimeter) areas, referring to the 285 Loop that circles the city. Here are some of the popular areas where people are moving: Northwest of the City: Kennesaw, Marietta, Roswell, East Cobb, and parts of Sandy Springs. These areas are highly developed and offer convenient access to the city with great schools, but they come with a higher price tag. North of the City: Milton, Alpharetta, and Johns Creek. Milton is known for its large estates and equestrian properties, with an average sales price of almost $1.4 million. Alpharetta offers more developed amenities and shopping, with an average price of $876,000. Johns Creek, slightly closer to Atlanta, also has great schools and amenities with an average price over $1 million. Northeast Metro Atlanta: Suwanee, Buford, Gainesville, Flowery Branch, Braselton, and Dawsonville. These towns provide a variety of housing options and community features that attract families, singles, and retirees alike. Each of these towns has something unique to offer, from lakeside living in Gainesville to excellent shopping and schools in Alpharetta and Buford, to more affordable pricing in Braselton, Flowery Branch, and Dawsonville. KeyPoint While Atlanta continues to be a hub of opportunities, jobs, and events, the suburbs offer a more attractive lifestyle for many families. Larger homes, better schools, safer environments, and a sense of community are just a few reasons why people are choosing the suburbs over the city. If you’re considering a move to Georgia, exploring these suburban areas might lead you to your ideal home.
Can You Afford It?! Cost of Living in Georgia
We all know that life has gotten really expensive these days. Inflation has touched just about everything, and I think we've all seen our cost of living increase dramatically over the last five years. You might live in an area that you simply can't afford anymore, and you're looking for more affordable options, or maybe you're just interested in what it will cost you to live here in Georgia. The vast majority of people I receive calls from are interested in the northern half of the state, so most of this information is tailored to these areas. If you find the northern half too expensive, middle and South Georgia are more affordable. Housing Costs The average cost of a home in the Northeast Metro Atlanta area in May 2024 was $539,000, with a median sales price of around $434,000. This is a significant increase from January 2021, when the average sales price was $374,000. This trend isn't unique to Georgia, but is prevalent in high-demand areas like Suwanee, Johns Creek, and Alpharetta, where average sales prices are $698,000, $860,000, and $955,000, respectively. However, more affordable options exist in towns like Flowery Branch, where the average sales price is just under $500,000, Grayson at $458,000, and Winder at $337,000. On the west and south sides of Atlanta, homes in the $300,000 to $400,000 range can be found in towns like Dallas or McDonough. Job Opportunities and Amenities The Northeast Metro is more developed, offering more job opportunities, highly ranked schools, and a larger population. While this makes it more expensive, it doesn't necessarily mean it's better, especially if you're looking for something more rural and affordable. Each town's unique factors significantly affect home prices. Property Taxes and Tax Exemptions Georgia offers attractive property tax benefits, particularly for retirees. Many counties provide senior property tax exemptions, which can significantly reduce the tax bill. For example, in Gwinnett County, a senior exemption can lower the property tax bill from over $1,600 to just $669. Comparatively, property taxes in states like Illinois can be nearly ten times higher. Georgia transitioned to a flat income tax rate of 5.49% as of January 1, 2024, replacing the previous progressive tax system. Sales tax in Georgia is 4%, with additional county taxes ranging from 6% to 9%. Utility Costs Air conditioning is a non-negotiable expense in Georgia, with summer power bills ranging from $200 to $300. Newer, energy-efficient homes may have lower bills, but it's wise to budget for these costs. Winter gas bills are also a consideration, especially for homes with gas fireplaces or furnaces. Additional Expenses Trash pickup is not included in property taxes in most cities and counties in the Northeast Metro, costing around $25 a month. Pest control is essential due to the prevalence of termites, costing a few hundred dollars a year. Public transportation is limited, making a vehicle necessary for most residents. Fortunately, Georgia has lower than average gas prices, and car tag fees are relatively low after an initial one-time fee based on the vehicle's value. KeyPoint The Northeast Metro Atlanta area offers a vibrant job market and a thriving economy, drawing people from all over to work in tech, healthcare, film, and more. If you're considering moving to Georgia, these insights into the cost of living will help you budget accordingly. If you've already made the move or have been living here for a while, share your experiences and any additional insights in the comments.
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