Metro Atlanta is one of the hardest hit for home values of the 20 metro areas tracked by the Case Schiller report. Things are looking up for us though - in a big way! In the past five months prices have increased over 15% in metro Atlanta. Inventory is very low and we are firmly in a seller's market for the first time in many years.
For all the good news however, for sellers who have been itching to jump into the market, this great news presents obvious challenges. First, when you go on market in great condition and staged for showing, you are very, very, very likely to receive multiple offers in short order even if you are priced just above the comparable sales. Inventory is low. The buyers in the market are all looking for the best apple in the basket and if your home is ready and priced right, it is very likely that you will sell for full price or higher.
The challenge: appraised value. We have low inventory but it's going to take a bit for values to catch up to the fact that the market is turning around. Cash sales without appraisal have been the predominant driver for the increases in property values that we have already seen.
Second challenge: do you place your home on the market knowing it could sell quickly when you have few choices in terms of your next purchase? It's definitely not "optimal" but try to be a big picture thinker to take advantage of the one thing that will affect you for many years - low rates.
You can wait until you think the moon and the stars are all aligned perfectly but will the rates still be low? The historically low interest rates are a key factor that is most likely to change dramatically in 2013. The Fed cannot continue to buy down the rates. We are out of money and after the election it will become clear to the new administration that the rates we have enjoyed for many months is unsustainable. We cannot continue to artificially prop up the real estate market at the expense of all Americans.
Competition is low. Again, it's what you have waited for right? You were waiting for the market to slog through the massive number of foreclosures and short sales. Well, we are there. . .jump in now or forever hold your peace!
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