Do you have a lot of questions about which way your Atlanta neighborhood “economy” is headed? How about the national and international economies? How about commodities, the trade war and crypto-commercialism? How about Greenland, for sale?
“A recession is likely at some point — but no one knows for sure when it will hit. There are enough other indicators of a coming market correction, like the yield curve inverting and GDP growth slowing, that I’d be surprised if one never came. But don’t trust anyone who tells you they know when it will happen. The Federal Reserve Chief Jerome Powell just signaled on Friday that a recession is not imminent, and that we can expect slower but steady growth.
If a recession comes, it is very unlikely to be as rough on the housing market as the 2007-09 recession. The last recession was catastrophic for residential real estate brokerage — but it was also much, much worse than the average recession and much worse on the housing market in particular. Thanks to tighter lending standards and new regulations, the next contraction will likely be much milder.”
Be calm, be cool, be collected. The Atlanta economy is relatively strong looking into the next 3-5 years. Employment is strong. Outside the perimeter, housing starts are rising in lower price ranges. Regardless, price decreases are happening daily in order to sell off months of piled up houses that have not sold since early 2019. It’s a more balanced market for buyers, and for sellers. More dependable. Foreclosures are indeed rising, higher in the suburbs. Inside Atlanta, the numbers look like this:
- Median list price: $339,500
- 2-year price change: 1.6%
- Percentage of underwater mortgages: 8.8%
- Foreclosures: 1 in every 1,942 homes
“Home prices have dropped 3% over the past year in Atlanta according to gobankingrates.com. Atlanta is also seeing homes stay on the market longer than the U.S. average. Plus, the foreclosure rate in Atlanta is higher than the rate nationwide.”
“Opportunities abound when a seller’s market turns into a buyer’s market — No one likes uncertainty, but some people are able to adapt to it and others are paralyzed by it.”
“Throughout this macroeconomic uncertainty, 3 things matter more than ever:
- Price. It’s wise to put even more focus on pricing listings correctly — and in a bumpy market, pricing aggressively compared to your competition. At The Wieloch Group, we have a remarkable Market Analysis method and the reports we produce are stellar for quick, yet detailed comparison and contrast. Our 50 years of collective experience is unique – we have vast resources. We also have Compass Search – the best real estate search system available, and Collections – the premier real estate workspace. Both are are superior tools for what is happening now in real estate, in your neighborhood.
- Perfection. All images, staging, wording, social media, and everything else that the consumer sees must look excellent. The tougher the market, the smaller the margin for error. This is a prime opportunity to take advantage of Compass Concierge to help your client’s home look its absolute best and Coming Soon to help it get the attention it deserves. These programs are just as powerful in challenging markets as they are in strong markets — if not moreso.
- Patience. What might have taken days before may now take many weeks or even months. Exercise patience.”
This Autumn looks to be very solid for Atlanta. The Wieloch Group is finishing strong, and we are never too busy for your referrals. Robert summarized the fundamentals today – price, perfection and patience.
Think on these things…
Sellers in Atlanta – would you rather price your property to create demand, or to simply add to the supply?
Buyers – lets offer your best price on a few of these houses and see what happens. Affordability is rather awesome, you just never know until you do it!