About Silver streak. ([Atlanta, Georgia]) 2023-???? | View Entire Issue (June 30, 2023)
healthy down payments — and the tire kickers trying out the market passively,” LaMarsh added. He noted that economists are predicting that there will be fewer sales this year “and the data definitely supports that so far.” “The low inventory is making it a challenge for those would-be sellers to become buyers. I hear several times a month, ‘Matt, we would love to sell and realize that great equity jump, but where would we move? There’s nothing on the market in the area we want to live.’” In LaMarsh’s own neighborhood of Mount Vernon Woods, comparable sales range as low as $300 and as high as $1.3 million. “That is a really wide gap for only 270 homes,” he said. Looking forward, LaMarsh expects activity to pick up during the summer. “So far in 2023, average prices inside the perimeter (ITP) are up 10.6% at the end of April over where we started in January,” reported Kristen Pollock, Real Estate Advisor, Engel & Volkers Atlanta. “But that’s only part of the story. We’re also seeing homes selling a little slower on average than they were in the spring of 2022, which is to be expected.” Although she’s licensed to help clients throughout the state, Pollock often works with clients in Intown areas including Morningside, Virginia Highland, Druid Hills, Midtown, West Midtown, Candler Park, Lake Claire and Decatur. She said that a year ago,the market was at its height with frequent multiple-offer scenarios. “Rates had already started to rise, and buyers were trying to secure a home before they got much higher,” Pollock reported. “Now, rates are higher, and with fewer buyers in the market, some of the frenzy we were seeing back then has gone out of the market. Still, the pace of sales is faster than it was pre-pandemic. On average, homes ITP sold almost two weeks faster this April than in April 2019, a typical real estate year.” Pollock stressed that Intown real estate is holding its value, and she’s not seeing the steep price drops that some buyers were expecting. New listings were down 22% in Intown this April compared to last, which can be in part attributed to sellers who are perhaps happier with their locked-in interest rate than their current home. Intown Atlanta has been in a low inventory situation for years and metro Atlanta would need 62,000 more homes this year to reach a balanced market, she explained. “We’re not on track for that. For this reason, we expect housing prices to hold, and an investment in Intown real estate to be a wise one for years to come.” Still, Pollock is optimistic that the next dip in rates will result in an increase in sales and inventory as more sidelined buyers and sellers come back to the market. “I am seeing so many buyers and sellers waiting for the right opportunity to come their way. Even a slight dip in rates can set that in motion as it improves home affordability,” she said. Low inventory remains For Allen Snow, Broker Associate / Vice President, Developer Sales and Marketing, Atlanta Fine Homes Sotheby’s International Realty, the overall Intown market has remained strong. “Atlanta still has exceptionally low housing inventory, which is driving the strength of the market despite rising interest rates,” he said. “In my experience, the impact of higher interest rates is affecting home sales differently depending on price point. Homes of all types priced under $550,000 are moving quickly and the luxury market over $1.2 million remains robust.” Snow noted that homes priced between $550,000 and $1.2 million are remaining on the market longer than the other two price point categories. As rates rise, purchasing power lowers, which explains why the lower price point homes are selling quickly, he said. “Buyers in the luxury home market appear unphased by the higher rates as most of them are purchasing with cash or mostly cash with a small mortgage,” Snow explained. “From what I see in the market, the higher rates are impacting the mid-priced — $550,000 to $1.2 million — market the most, due to the aforementioned reduction in purchasing power and because the majority of buyers in this price range are obtaining larger mortgages.” Snow said he’s hopeful interest rates will settle in 5% to low 6% vicinity later this year. “Even if they don’t drop and remain at the current rates between 6.5-7%, they are reasonable compared to historical averages,” he stressed. “Additionally, I’m not seeing any evidence Intown housing inventories will rise significantly for the foreseeable future.” Leigh Schiff is a Real Estate Advisor with Atlanta Fine Homes Sotheby’s k International Realty. She and her husband Michael head The SchiffTeam; she’s the lead listing specialist, and he’s the lead buyer specialist. In their territories of gjj Buckhead / Sandy Springs, activity has been strong and constant in the first half of 2023, according to Leigh. “The homes that are priced correctly and in move-in condition are the properties that receive multiple offers the first weekend they hit the market. Roughly one-third of new listings are selling the first weekend they are on the market,” she said. Leigh said she thought the higher rates would reduce the number of buyers looking for homes, “but there are still plenty of buyers looking for a new place to live. Until inventory levels start rising to a level where it is a balanced market for buyers and sellers, it appears that the higher interest rates will have little to no impact on the buyer pool in Atlanta.” And there’s no slowdown in sight. “I hate to be repetitive, but this is due to the limited inventory on the market and the constant influx of buyers into the local market. I feel that the market will stay stable for the unforeseeable future,” Leigh predicted. Leigh & Michael Schiff' RoughDraftAtlanta.com JUNE 2023 | 5
