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HOME & REAL ESTATE Trends • Development • City Living
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Real Estate Forecast
2021 expected to be a record-setting year after a surprisingly strong 2020
By Collin Kelley
D espite the pandemic upending
lives and businesses, one sector
that has remained remarkably
strong is the residential real
estate market.
The median list price for homes in the
city increased, inventory decreased, and
sellers saw their properties in
bidding wars and snapped up
by interested buyers in days.
Local real estate professionals
said that trend is set to
continue in 2021 as Intown’s
neighborhoods — especially
those along the Atlanta
BeltLine corridor — continue
to attract buyers.
Another Record
Setting Year Ahead
“I think an unexpected
result of2020 was the
strength of the residential real
estate market despite the other challenges
we all faced,” said Joy Myrick, a Realtor with
Atlanta Fine FFomes Sotheby’s International
Realty. “The median list price of Metro
Atlanta homes rose in the range of 8-9%
year over year, while the inventory in some
Intown neighborhoods decreased around
26%. Average days on market for desirable
intown areas was down 37% to just 15 days.”
Myrick said Metro Atlanta’s growth this
year has had a huge impact on real estate
and pricing. Many experts point out the fact
that the cost of living in Atlanta is reasonable
when compared to other big cities like Los
Angeles or New York, which was a catalyst in
the influx of new residents purchasing homes
in 2020.
“All indicators point to another record
setting year in Atlanta real estate,” Myrick
said. “We expect more homes will be listed,
however after five years of limited home
availability, it will take a while for inventory
to rebound. While Metro Atlanta is predicted
to see one of the steepest rises in home
pricing next year (projected price growth is
at 6.7% for 2021), historically low interest
rates will continue to incentivize buyers to
purchase. With the anticipated quick vaccine
rollout, we could see sales numbers reach
even higher levels than expected.”
Myrick said home demand remains
strong to be near the BeltLine, Piedmont
Park and in walkable areas such as
Morningside and Virginia Llighland. Many
buyers desire these neighborhoods, lined
with sidewalks and front porches in order
to connect with their neighbors outside.
The short commute time has become less
important to buyers, but the neighborhoods
remain popular for their biking paths, pocket
parks and restaurants offering patio dining
and takeout windows, Myrick said.
“We are seeing new development in
Piedmont Lleights and the Cheshire Bridge
corridor which is often slightly more
affordable while offering the same amenities,”
Myrick commented.
Myrick recommended
that Intown buyers be pre
qualified by a reputable lender
and be ready to make an
offer quickly. Many homes
are selling before hitting the
market or in the first few days
on the market with multiple
offers.
Bigger Lots,
Outdoor Living
Stephanie Marinac and
Llarvin Greene, Realtors with
Dorsey Alston, said they were
initially concerned about the
health of the real estate market last spring
when Intown was in lockdown, but those
fears were unfounded.
“In some ways, it’s hard to believe given
the uncertainty surrounding the economic
impacts of the global pandemic and the
temporary slowdown that is often associated
with a presidential election,” Marinac said.
“Using data from the multiple listing service,
our calculations indicate growth in all
measures—units up 3.3%, total sales volume
up 9.4%, and average sales price up 6% in
the Intown market compared to 2019.”
Greene said tight inventory remains tight,
resulting in a decrease in days on market
(down 8%) over 2019. She said typical
seasonality spikes were upended because of
the pandemic, resulting in a slower spring
market, but replaced with a robust summer
and fall market, with barely a slowdown
heading into the typically slower holiday
season. Specifically, the 2020 market was
particularly strong in the entry-level price
point ($700,000 and lower) and the luxury
market ($2 million and up), Greene said.
“We expect that 2021 will continue to
bring a strong real estate market in Atlanta,
specifically in the Intown neighborhoods,”
Greene said. “We expect that the positive
news about the delivery of COVID-19
vaccines and the rapid delivery will create
consumer confidence, which will continue to
fuel real estate sales in 2021.”
Marinac said people spent an
unprecedented amount of time in their
homes—working, attending online school,
or just enjoying more
leisure time — during 2020.
The result has been buyers
deciding that they need or
want different features from
their homes. In some cases,
people have determined that
they need more space because
they foresee that they will
continue to work from home
more, even after the pandemic
resolves, Marinac said.
“Another result is that
we’ve seen a shift toward
buyers wanting bigger lots and
a much greater emphasis on
outdoor living and entertaining,” Marinac
said. “Pools, specifically, have been an even
bigger attraction in 2020, and we expect that
trend to continue in 2021.
We have also seen a significant
migration to Atlanta from
higher-density markets, like
New York and Los Angeles,
likely related to COVID, but
people seem to be flocking
to markets where housing
is affordable and it’s easy to
find a home with land and
outdoor entertaining spaces.”
Greene said Druid Hills,
which she believes has been
somewhat undervalued
compared to adjacent
neighborhoods, has seen a particular spike
in desirability and an associated average
price increase of 25% in 2020 compared to
2019, and a 35% average price increase in
the past five years. Morningside and Virginia
Llighland continue to be in high demand,
as evidenced by their average price increases
of 33% and 26% in the past five years,
respectively. She said the Atlanta BeltLine
continues to be a driver for real estate growth
in residential home demand and prices.
Marinac and Greene encouraged buyers
to not be afraid to look at a house that has
been on the market for a while.
“We have seen an attitude among buyers
that if a house is on the market longer
than a couple of weeks that there must be
something wrong with it, but that is often
not the case,” Marinac commented. “Keep
an open mind and even consider what effect
minor cosmetic changes can have on a
house. You may find the hidden gem you’re
searching for. Our advice to sellers is to take
advantage of the strong market, and if you’re
considering selling — don’t delay. There is
high demand and low supply for Intown
housing, so jump on the opportunity.”
Demand Greater Than Supply
Carolyn Calloway, Senior
Marketing Consultant with
Llarry Norman Realtors,
Buckhead agreed that the
spring slowdown in the
market was short-lived.
“When the market did
quickly bounce back, it
not only made up for lost
time, but it continues to be
an active market driven by
historically low interest rates
and low inventory,” Calloway
stated. “Demand for homes is
greater than the supply, which
is resulting in sellers receiving
multiple offers, often selling over the list
price.”
Calloway said because of the competitive
market, buyers are experiencing longer
buying cycles.
“A lot of buyers miss out on the first
home they want and have to restart the
process,” she said. “This means that the
number of showings for homes is high as
more and more people are enjoying the
convenience of a virtual tour.”
Calloway said the pandemic has
somewhat changed what people are
looking for, with a growing demand for
multigenerational homes.
“People want to be able to share their
home with their older parents or college
children under the safety of their own roof,”
she said. “Buyers are seeking not just more
space, but more rooms. This is the reverse
of the open plan we have seen for the last
few years.. .people want walls, and now are
looking for individual spaces for office, gym,
school, etc.”
She said buyers at the higher end of
the market are looking to invest money in
making their home a sanctuary. Instead of
traveling to a resort, the resort comes to
them. FFome gyms, home theatre, swimming
pools, and outdoor kitchens are in high
demand.
Virginia Llighland, Morningside, Ansley
Park, and homes near Piedmont Park and
the BeltLine remain some of the most
sought-after areas of Intown. EC]
AtlantalNtownPaper.com
20 January 2021 | na