The Atlanta area real estate market has been hot! Some Atlanta area metro counties have seen 15% price increases in the past year.
I end up asking the question: Can this continue?
I ask this because I do have clients that are falling off of the bottom, meaning they are being priced out of the home market. They have to continue renting and trying to save more money for a home purchase. Unfortunately prices are going up faster than they can save!
I am putting a link to an article from the National Association of Realtors entitled: "Home Sales Expected to Expand Modestly in 2017 As Affordability Pressures Temper Buyer Enthusiasm"
Here are a few quotes from the article:
"Lawrence Yen NAR chief economist, says declining affordability in many parts of the country is behind the weakening morale. "Rents and home prices outpacing incomes and scant supply in the affordable price range has been a prominent headwind for many prospective buyers this year," he said. "
"Although the economy is expected to continue to expand with around 2 million net new job creations, existing home sales are expected to see little expansion next year because of affordability tensions from rising mortgage rates and prices continuing to outpace income growth," said Yun."
"Some would-be sellers may be reluctant to move up or trade down — especially if they've refinanced in recent years," said Yun. "That's why it's extremely necessary for homebuilders to step-up their production of homes catered to buyers in the affordable price range. Otherwise the nation's low homeownership rate will struggle to shift higher in 2017."
Here is the link to the entire article:NAR Article about Modest Rising in Home Sales
Again I am not trying to scream that the market is collapsing.
However when I see a home in Decatur Georgia, built in 1949, needing a complete renovation, being listed for $169,000, selling for $251,000 all cash, I start to wonder!