Hi Friends and Neighbors,
Right now, I’m getting questions from buyers and sellers who worry that they have missed the market to buy or sell a home. So, did they miss buying or selling in one of the most unusual times in American history? They may not have sold at the peak, but we still are in the longest running streak on record of year over year price increases. Real estate is still strong despite all the negative news that is swirling around us. Instead of crashing, the expectation is that the market is actually going to normalize.
Nationally, the median existing-home price for all housing types in June was $416,000, up 13.4% from June 2021 ($366,900), as prices increased in all regions. This marks 124 consecutive months of year-over-year increases, the longest-running streak on record according to the National Association of Realtors.
Here is what we are seeing in East Cobb/Atlanta market:
We are coming off a time of extremely low housing inventory, low interest rates and a booming stock market that caused buyers to feel very optimistic about their financial condition. Many were willing to do what it took to get the house they wanted during 2020 through the early spring of 2022.
Today’s buyers feel quite differently. While inventory is still low compared to pre-pandemic levels, more homes are coming on the market. With more homes to choose from and fewer buyers who are enticed by low interest rates, homes are sitting on the market a little longer.
Looking at the graph below, you can see how different 2022 looks compared to the roaring years of 2007-2010. So, we are not likely to have a housing bubble due to an over supply of homes.
As far as price goes, we have seen more adjustments recently than in months past.
Why are price adjustments happening? Part of this can stem from sellers who are overly ambitious regarding sales price. They are holding on to the news of the deals their neighbors got in 2020 and 2021. In 2021 the annual appreciation was almost 20%. In June 2022, East Cobb prices were up 17% over last year. Historically, 3-5% is a healthy rate of appreciation and what is considered normal.
Where are we headed next year? Opinions vary. It may be closer to 8-10% appreciation since we still have low inventory, and both Atlanta and East Cobb are migration locations for buyers who want to move to our area. See the chart below with Fannie Mae’s Housing National Forecast.
It’s hard to say where interest rates will go. Most experts says 5-6% might be the norm for now. However, mortgage brokers quoted 4.75% earlier this month. And with brokers who offer float down programs, competitive rates are still predicted to exist into 2023.
We only have a little under two months inventory in East Cobb. So, we do expect prices to hold steady in the near future. But, with fewer buyers, sellers need to know if their home is not priced for the current market and in a condition that warrants the price, it may sit on the market longer before getting an offer.
There is still time to sell your home if you are thinking of a move before the end of 2022. Believe it or not, according to FMLS numbers, 40% of homes in Atlanta sell from August – December. Give me a call if you are interested in making a move this year!
Choose a real estate agent who knows East Cobb when you are ready to sell or buy in East Cobb. Contact Lee Ann Wynns, Dorsey Alston Realtors, at 404-680-7859 for a free consultation.
Ready to make a move?
Let us list your house for more! Our large referral network can help you find the right home anywhere in the USA. Contact Lee Ann today to learn more.
Lee Ann is a member of Women’s Council of Realtors – Cobb and Cobb Association of Realtors. She is a top producer with Dorsey Alston Realtors specializing in the East Cobb market and Certified Luxury Home Marketing Specialist
Lee Ann Wynns | East Cobb Realtor®
DORSEY ALSTON, REALTORS®