Updated: Oct 9, 2020
With the rise in the prices of homes, limited inventory, and the coronavirus pandemic, buying a home in Atlanta for most home buyers is fast becoming a dicey adventure. Many homebuyers in the city of Atlanta are now faced with constant bidding wars or rejected offers, while others are speedily scooping whatever’s left of the so-called American dream.
If you’re like any other potential homebuyer still concerned about actualizing their dream of purchasing a home in 2020, then this article is for you. In the following sections, we will highlight a few reasons why 2020 may still be the best time to buy a house in Atlanta.
With an estimated 90,000 people moving to the Atlanta area annually, Atlanta is currently the 4th fastest-growing metro area in the US. This is mainly due to its growing economy and job rates. The Atlanta Regional Commission speculates that the population of the Big Peach area is expected to hit 8 million residents by the year 2040.
With the massive influx of millennials, young families, and diverse professionals, there is an increased demand for the limited homes inventories in the area. 2020 is definitely the “best time” to purchase a home in Atlanta if you hope to avoid future stiff competition or exorbitant home prices.
The city of Atlanta especially metro Atlanta is currently an economic destination for thousands of companies and professionals. A study reveals that between the year 2018 and 2019, Atlanta had the largest employment boost in the US with employment rates hovering around 3.5% compared to the national average of 2.6%.
Today, an average of twenty-six Fortune 1000 companies are headquartered within the metro Atlanta area with thousands of educated workers migrating to the area for greener pastures. With plans underway by the state government to create an additional 350,000 jobs by the year 2030, the price of homes and rents is more likely to increase to match the rising demands for houses.
So, 2020 may be an advantageous year to invest in Atlanta’s residential property market. You not only get to build equity but also take advantage of the growing population of renters moving to the area for jobs and economic activities.
Home Valuation and Appreciation
The Atlanta area over the last decade has experienced one of the highest home appreciation rates not only in the state of Georgia but in the nation. Over the last ten years, home prices in the Atlanta area have appreciated 66.14% putting it among the top 10% nationally for home appreciation.
According to real estate website Zillow, the value of single-family homes in Atlanta is $259,700, which is around 9.7% higher than the home value of last year. And with millennial and young families making up the greater share of the migrating population, investing in residential rental properties may be a great choice owing to the large influx of renters.
Low Mortgage Rates
With the continued spread of the coronavirus pandemic, mortgage interest rates in the Atlanta area is at an all-time low. In fact, Fannie Mae, predicts that the mortgage interest rate in the US is projected to hit a record low 2.75%, which may even be far lower for homebuyers with great credit history.
However, the report indicates that while interest rates are quite on the low, the price of homes in is more likely to increase up to 4% before the end of 2020. A continued decrease in interest rates and shortage of homes may affect home affordability in the Atlanta area in the next coming months or years. This is because current homeowners may be unwilling to sell their homes but rather refinance into a lower mortgage interest rate.
Buying a home in Atlanta in 2020 may be your only opportunity to take advantage of the record-low interest rates. Not only will you be saving money on mortgage payments, but you can build equity on the home faster.
The Atlanta area of Georgia offers new and existing home buyers tons of benefits. From lower interest rates, potential home appreciation, diverse community, and a superb economy, buying a home in Atlanta in 2020, is a great idea. If you’re planning on purchasing a home in Atlanta in the coming months, you should hire a reputable real estate company to help you get the best out of your home buying process.
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Georgia Estate Team