Experts predict 2021 will see a strong real estate market both nationally and in the metro-Atlanta area. Regional highlights from the 2021 National Housing Forecast by Realtor.com include:
- Home prices in Atlanta are projected to grow 6.7% in 2021, compared to a 5.7% increase nationally.
- Atlanta home sales are also predicted to increase by 3.6% this year.
- New construction is expected to increase by 9%.
Other facts that stand out:
With increases in new construction predicted and sellers ready to jump into the market after sitting out last year, home inventories will likely be stronger in 2021. Atlanta will still be in a housing shortage and recovery is expected to be slow.
- Mortgage rates are predicted to rise to 3.1 - 3.3% in 2021. While a few percentage points may not seem huge, it can mean hundreds of dollars added to a mortgage payment and thousands of dollars more in closing costs.
- Rising prices, interest rates and an increased stringency of mortgage underwriting by lenders will all contribute to lowering the affordability of homes as 2021 goes on. This will most likely impact younger or first-time homebuyers the most.
If you are considering entering the market, the overall message is clear. Sooner is better than later. If you are selling, there will be less competition and more buyers able to afford the price you ask for your home. If you are buying, the sooner you purchase, the more value you will get for your investment. If you are thinking about either and want to explore the possibilities, I would love to chat.
If you have no plans to enter the market but would like to stay aware of your home's value and remain up-to-date with your neighborhood activity, I can set you up with automatic updates. Just use the button below to email the name of your neighborhood and I will get you set up!