My sense of things in the Atlanta market is that we will remain in a 'bargain market' for all of 2009. But what better time to buy! Sellers are competing for Buyers in today's market which means homes must be priced agressively for market conditions . There are plenty of Buyers out there 'circling the wagons' and waiting patiently for the right price adjustment. Slow 'sales activity' indicates a continued high level of Buyer price resistance in the current market. When a home is priced correctly, we often have multiple offers on the table.
The Economic Stimulus package set forth with a tax credit to home buyers in 2009 will likely stimulate our seasonal activity for a brief period of time. I believe that when the freeze on foreclosures is lifted we will have a large number of property floreclosures glutting the market, contributing to an already difficult year for property sellers but an outstanding one for buyers! I would sell in the spring market when historically the highest value is recieved and then buy while the interest rates continue to drop.
Sales prices in 2008, driven down by Buyer price resitance and forclosure sales is at levels unseen since 2003 in certain micromarkets. Resale prices have dropped 12.4% in 2008. New homes are giving away plenty of incentives but Builders are reluctant to drastically drop prices so the rate of price decline is much less than Resales. What you don't recieve in a drastic price reduction is seen in the buyer incentives such as finished out basements, or even a pool.
Time will tell but again I believe optimistically that there are many deals to be made and Atlanta is still one of the best places to live in the U.S.A. Cost of living and quality of life is fabulous ~ even the traffic problems have improved dramatically! It's a great place to call home!
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