That’s certainly one way to look at it – thank you for the positive outlook, Pantera.
This week, Nobel Laureate in Economics Robert Shiller looks at real estate life in America and says that US home prices “could start falling.”
Prices already are falling, in some submarkets. Falling prices bring a “second wind.” The second wind is showing up in September.
I spoke with a respected Atlanta Realtor today who just last month had two, brand new, very nice, attached houses for sale in 30306 – 30 days ago, each house was $799,900. He already has a second wind of showing activity. He will sell one of those this week. What caused this second wind?
The second wind for his listings came about because today, those 30306 houses are “priced to sell” at $750,000 each. That’s a 6.25% drop in about 3 weeks.
Robert Shiller knows that all real estate is local, and he gets very real when he states “The S&P CoreLogic Case-Shiller index of property values in 20 cities decelerated for a 15th month in June, increasing 2.1% from a year earlier. Shiller noted that adjusting for inflation, prices had already flattened.”
Nevertheless, housing market fundamentals remain strong in Atlanta.
“Javier Vivas, director of economic research at Realtor.com, says that the inverted yield curve is often a red flag for economic trouble, and that right now, it definitely signals a loss of economic momentum. But he doesn’t believe the housing market is in nearly as much trouble as it was during the last recession.“
“The short term impact to housing is less likely to be as reactive,” he says. “The impact of the last recession is fresh in our minds and can have a play in home buyer psychology. But barring weak fundamentals, housing tends to perform fairly well during recessions. Over-construction is largely what got us into trouble last recession, and we’ve experienced just the opposite since then.”
All of us at The Wieloch Group are ready to help you if you need some hyper-local perspective on what’s happening on your street in metro Atlanta. We live and breathe Atlanta real estate, and in our opinion the “overall” residential real estate fundamentals are mighty, mighty strong in Atlanta.
We also know that some prices do indeed need to come down in order to yield a SOLD result. We have plenty of experience and we can point to these disparities and help buyers and sellers make informed decisions – we do it everyday.
Knowing that, it’s an advantageous time to be a buyer in the latter portion of 2019. Robert breaks it all down macro-economically in this recent video – we can break it down for you on your street. Call us – we got your back during this “second wind.”