There’s no denying that the real estate market across the country—and in all price ranges—has slowed dramatically as a result of the pandemic. In some of the priciest metropolitan markets, such as Washington, DC, many who had listed luxury properties took them off the market. The financial reasons for this are obvious, more because of uncertainty than actual economic retrenchment. In the Beltway, in particular, other factors have caused sellers to pause. For instance, many foreign investors have been locked out of the market because of travel restrictions.
On the other side of the coin, against the conventional wisdom of the day, Georgia’s real estate market—particularly for luxury sellers—seems poised to take off. As counter-intuitive as this seems, there are half-a-dozen good reasons for Georgia luxury homeowners to list their property.
1. Unbelievably Low-Interest Rates
As of July 2020, the 30-year fixed rate was coming in at under 3%. Rates have generally trended downward since being over 12% in the early 1980s. It’s difficult to believe anyone could have foreseen them dropping this low, however.
2. Extremely Low Housing Inventory, Especially in the Luxury Range
Housing scarcity has been a fact of life in real estate ever since the Great Recession. With investors snapping up choice Georgia properties in the last 18 months, plus many would-be sellers deciding not to list their homes, those fine dwellings that do come onto the market attract immediate interest.
3. Prices Are High Without Being Overpriced
In the last 12 months, the median value of all Georgia homes has risen by 7.5%. Even in the first quarter of 2020, the value of Georgia homes increased by 1.28%. To put this in perspective, however, Georgia ranks #18 in the Moody’s Analytics and the U.S. Census Bureau report of housing affordability. Thus, while luxury home prices are highly valued and increasing, compared to most other large housing markets, Georgia homes are quite affordable.
4. Viewing, Negotiating, and Selling Have Been Streamlined
Social distancing and office-in-home workplaces have necessitated a wave of new business innovations. Just as we have learned to bank and shop and tailgate at home, realtors, and agents have used the exigencies of the pandemic to make the home selling process simpler and less time-consuming.
5. Luxury Buyers Are Still with Us
Conventional wisdom has it that there will be a glut of homes on the market over the next few months as a result of foreclosures that have been forestalled through forbearance, which is coming to an end. That has not yet happened, it may not happen—at least not for many months to come—and the reality is, as we learned from the Great Recession, the luxury segment is less affected by such market factors. Those interested in exclusive properties are looking for them now.
6. Finally, Your Home Is in Georgia
There are reasons that Georgia has been the number one state in attracting new residents for the past nine years, that all parts of the state have continued to grow even throughout the pandemic, and that economic forecasters predict Georgia’s future is full of growth. For business, leisure, education, retirement, and a future, people want to relocate to Georgia. Perhaps you’d like to list your home and make it available to a fortunate new resident of the Peach State.
Sources: