A message regarding the 2011 real estate forecast for Atlanta from the president of Atlanta Fine Homes Sotheby’s International Realty.
Welcome 2011! Every housing professional I meet – from builders and developers to Realtors and brokers is enthusiastic about this year and the return of a stable and growing housing market across the country.
Prices are favorable; interest rates are at an all time low; and at Atlanta Fine Homes Sotheby’s International Realty we see the year ahead emerging as a period of transition for the Atlanta housing market. Buyers and sellers alike will realize new opportunities during this time.
What makes this year different and our outlook more positive? Available inventory and interest rates. Our local home inventory levels have fallen from last year’s outrageous peaks to a more reasonable and manageable 11 months supply of homes for sale. While this level is still higher than what we prefer, it helps stabilize market values, prices and perceptions.
We still have a ways to go before we enjoy our customary trend of modest appreciation rates in Atlanta, but things are moving in the right direction.
With every market transition, we find new opportunities to capitalize on shifts in buyer behavior. As the general economy shows signs of growth, we’ll see a number of potential homebuyers prepare to move forward with new home purchases.
The market volatility of the past few years, coupled with high unemployment, has served to create some pent up demand for homeowners looking to relocate, right size or expand. This is good news for sellers, who may have been waiting to put their homes on the market.
Additionally, market analysts and experts tell us that interest rates will begin to climb again this year, a further incentive to get buyers off the fence and ready to purchase. Long-term interest rates will begin to rise as our economy moves toward recovery. Buyers will benefit from the combination of soft prices and the most favorable interest rate market that we have seen in decades.