Upcoming Election Creates Chaos in the Real Estate Market?

The real estate market is experiencing some turbulence, and it's no surprise that the upcoming presidential election is playing a significant role. However, it's not just the election itself that's causing the most disruption. There are several underlying factors at play, which are impacting both buyers and sellers in unexpected ways. One of the most significant reasons home prices are not expected to plummet is the current inventory shortage. A substantial 60% of homeowners have locked in interest rates below 4%, with many even lower. These homeowners are understandably reluctant to sell, knowing that giving up their low mortgage payments for a new, higher payment doesn't make financial sense. In fact, these low payments are helping many households manage inflation and other economic pressures. Historically, the Federal Reserve (FED) tends to avoid adjusting rates around election time to maintain political neutrality. However, many anticipate that rates may drop in the near future, which could provide some relief for those feeling "stuck" with their current mortgage rates. The FED's recent indications have already caused a reaction in the mortgage market, with rates beginning to decrease slightly. As rates drop, even slightly, more buyers may re-enter the market, potentially leading to increased competition, lower inventory, and higher home prices. This could create a challenging environment for buyers, especially those who have been waiting on the sidelines for the right moment to purchase. The real estate market is always unpredictable, but during an election year, it becomes even more crucial to have a reliable lender who is responsive and can navigate the fluctuating rates effectively. The importance of having a great lender cannot be overstated, especially as we brace for potential changes in the coming months. KeyPoint As the election approaches, the real estate market is bound to experience more volatility. While some may anticipate a crash, the lack of inventory, coupled with low mortgage rates from previous years, makes this unlikely. Instead, expect increased competition and potentially higher home prices as more buyers re-enter the market. It's essential to work with a skilled lender who can help you navigate these changes and secure the best possible outcome for your real estate needs.

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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.

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WORST Time to Buy?! 2024 Mid Year Real Estate Market Update

The real estate market in Northeast Metro Atlanta has been unpredictable in 2024, with dramatic shifts from sky-high bidding wars at the start of the year to a noticeable slowdown as summer progresses. Let's dive into what's happening and what you need to know. The Current Market Landscape Interest rates have been a significant factor this year, hovering in the high 6% to low 7% range. This increase has made monthly payments significantly higher than in previous years, affecting buyers' purchasing power. While the year started with high demand and limited inventory, leading to competitive bidding wars, the market has cooled down as buyers become more cautious due to higher interest rates and home prices. High Demand Areas Despite the overall slowdown, some areas like Alpharetta, Suwanee, and Johns Creek remain highly sought after. These areas continue to thrive due to their excellent schools, strong job markets, and ongoing developments. New neighborhoods and amenities in these towns have increased housing options and demand. Slower Markets In contrast, smaller towns and less popular areas have seen a more significant slowdown. Homes in these areas are staying on the market longer, especially those that need work or are not in ideal locations. The disparity between high-demand areas and slower markets creates a mixed picture for the overall real estate market. The Impact of Interest Rates Interest rates play a crucial role in shaping the market. The Federal Reserve's decisions on rate cuts have a significant impact on mortgage rates. If interest rates stabilize or decrease later this year, it could draw more buyers into the market, improving affordability. However, this could also lead to increased competition and higher home prices, creating a catch-22 situation for buyers. Inventory and Market Stability Inventory levels have been tight, contributing to high home prices. While we are seeing a gradual increase in listings, especially now that school is out for the summer, it's not enough to meet the demand. More inventory is needed to stabilize home prices and create a more predictable market. Rental Market Changes As home ownership becomes more challenging, the demand for rental properties has increased, leading to higher rental rates. Investors have significantly impacted the rental market by purchasing a large portion of real estate in the area, often with cash offers, making it harder for first-time homebuyers and increasing rental prices. Looking Ahead The second half of 2024 will be shaped by several factors, with interest rates being a major influence. If rates decrease, it could bring more buyers into the market, but also increase competition and home prices. The regional economy and employment rates will also play a crucial role in maintaining high demand for housing. KeyPoint If you're considering relocating to Georgia, the decision ultimately comes down to your priorities and financial situation. While interest rates are high, home prices in Northeast Metro Atlanta are still relatively lower than in many other states. The key is to evaluate your goals, budget, and available options, and work with a knowledgeable real estate agent and lender to make the best decision for you and your family. Whether you're moving for work, to be closer to family, or to improve your quality of life, now might still be a great time to find your dream home in Georgia. If you need guidance, I'm here to help. Feel free to reach out through the link in my pinned comment below. Happy house hunting!

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