Over the past several years, Millennials have effectively dominated the real estate market, accounting for at least one-third of all home buyers according to the National Association of Realtors. All indicators suggest this trend will continue for some time as more Millennials to find their own financial footing. However, the housing markets do not always coincide with buyer’s sense of “readiness,” and we are seeing signs that Atlanta’s housing market may be reaching a tipping point of accessibility. In other words, here are five reasons why the best time for Millennials to buy a home in Atlanta may be now, rather than later.
1. Prices are increasing (but still affordable by comparison).
Healthy housing markets and growth rates almost always result in rising prices, and Atlanta is no exception. This city has enjoyed remarkable affordability over the years among cities its size, but now as one of the fastest growing metros in the United States, Atlanta is starting to see significant increases in real estate prices. The dollar still stretches farther here than in other large cities, but that trend might not last. This means home prices will probably never be lower than they are now.
2. Inventory is shrinking.
Home availability in Atlanta has not been keeping up with the demand, meaning there are fewer homes available. Not only does this create a seller’s market with higher prices, but it also narrows the number of available homes in a certain price range. New homes will eventually catch up with the market, but these are likely to be priced higher than new homes today. Bottom line: If you see a home in Atlanta you like, now is the time to buy.
3. Interest rates are rising.
After an extended period of historically low interest rates, the Federal Reserve has begun increasing the benchmark rate, with more hikes expected in the coming months. If this comes to pass, mortgage loans will cost more, and a house payment will not buy as much home in a few months as it does today. That said, interest rates today remain reasonable, so locking into these rates before they go up is a good idea.
4. Market predictions are favorable.
A booming market can hurt buyers, but it is great news for owners. According to Curbed Atlanta, this metro is expected to be the sixth largest in the U.S. by the 2040, with up to 9 million people calling Atlanta home. This trend bodes well for homeowners who can expect their property values to continue rising as demand remains high. Buying a home may become more challenging, but once you own it, you will have a seed of equity that will continue to grow. In other words — the time to become an owner is now.
5. You may qualify for help.
Many Millennials are buying their first home. If you are among them, you may qualify for local and federal programs designed to make buying more accessible. You may qualify for an FHA-backed loan, for example, which enables you to buy with a lower down payment. There are also a number of down payment assistance programs offered by various organization. These may cover some or all of your down payment if you qualify.
The Millennial generation may never see a better time than the present to buy a home in Atlanta. If you are ready to find yours, we are here to help. Call Atlanta Fine Homes Sotheby’s International Realty today at 404.237.5000.