For a number of years now, Atlanta has enjoyed the status of being one of the most vibrant real estate markets in the United States — thanks in part to a thriving job market, mild climate and modest yet rising property values. Even so, buying a home in Georgia is an important investment, as much for yourself and your family as for your net worth. You want to be certain your investment dollars are well spent, especially if you are a first-time homebuyer in Atlanta. So, let’s take a snapshot of the current Atlanta real estate market and what prospective buyers need to know for 2020.
How COVID-19 Is Affecting the Georgia Housing Market
Perhaps one of the most pressing questions Atlanta homebuyers want to know is how the Coronavirus pandemic will affect home sales, both now and for the long term. While the shutdowns affected markets across the board, the prognosis is actually favorable for potential buyers. According to data from the latest Southeast Housing Market Poll, home sales and buyer traffic have been predictably down recently, and available inventory has remained relatively flat as there are fewer new construction homes in process.
While it may take a bit of time for the economy to recover as the virus wanes and businesses reopen, the results actually work in the homebuyer’s favor, at least for the short term. Typically, fewer sales and fewer buyers add up to lower prices. Before COVID-19, the housing market was already cooling across the nation compared to the national average over the past year. While metro Atlanta fared better than most, home prices and overall demand had already begun to moderate before this crisis. The upshot is that, for now, we can safely call it a “buyer’s market”, which means buyers have more room to negotiate with sellers for better deals below list price. In addition, mortgage interest rates continue to be low, allowing buyers to receive more home for their money. You should obviously take the proper caution and social distancing measures when searching for your new home, but now is an excellent time to seek out better deals.
Despite COVID-19, Property Values Are Still Healthy Overall
When the market shifts toward a buyer’s market, sometimes home prices begin to drop — so will the COVID-19 crisis affect property values in Atlanta?
Before the pandemic, even as the market was beginning to cool, Zillow was predicting median prices across Atlanta would still increase by 4.4 percent even as prices began dropping in places like New York and other metropolitan areas. Since the pandemic, Zillow predicts a 1.5 percent decrease on average over the next year, which includes a time of recovery toward the end of the year.
For homebuyers, this means Atlanta real estate is ultimately still a reliable investment that should continue to increase in value over time — even if property values drop slightly.
4 Tips for Buying Atlanta Real Estate in 2020
1. Invest in Atlanta’s BeltLine Neighborhoods
The Atlanta BeltLine project, a massive effort to transform the old transit lines into an interconnected network of walking trails, is now taking shape. This has been causing a number of neighborhoods connected to the BeltLine to see a fresh surge of revitalization and renovation, making this part of Atlanta very attractive to Millennials and also very promising for other real estate investors and people looking to “buy low and sell high”. If you are looking for a property with great appreciation potential, look in walkable neighborhoods along the designated BeltLine routes. Take a look specifically at homes in these up-and-coming neighborhoods:
- Ormewood Park — Experiencing ongoing redevelopment, especially around Glenwood Park
- Grant Park — A lovely community centered around an actual park of the same name
- Cabbagetown — Originally designed as housing for textile mill workers, Cabbagetown has been renovated into a chic arts community with its shotgun-style homes and bungalows.
- Reynoldstown — A revitalized historic district valued for its walkability factor
- Inman Park — Historically Atlanta’s first planned “trolley” suburb, today, it is a haven for lovely historic homes
- Old Fourth Ward — Once an industrial zone, today it is one of Atlanta’s trendiest neighborhoods with great shopping, dining and nightlife
- Midtown — The ultimate in modern urban living, Midtown sits near Downtown Atlanta, which is known for its commercial areas and high-rise condos
- Ansley Park — A lovely historic Intown neighborhood adjacent to Piedmont Park
- Morningside — Wooded streets, historic homes, plenty of green space and the famed Morningside Farmers Market
- Brookwood — A small but delightful neighborhood at the southern tip of Buckhead
- Peachtree Hills — A lovely blend of residential neighborhoods convenient to shopping areas
- West Midtown — Another converted industrial area, West Midtown is now known for its urban lofts and art spaces
2. North Atlanta Remains Coveted Luxury Real Estate
Even as interest shifts more toward Intown living thanks to the BeltLine, the affluent areas of North Atlanta have still not lost their luster. This part of the metro area remains one of the most coveted places in Georgia to buy a home, and we can expect home values here to continue appreciating over the long term. Some specific neighborhoods to look at right now include:
- Buckhead — Easily one of the most coveted sections of Atlanta, Buckhead encompasses a large area consisting of dozens of individual neighborhoods, plenty of shopping, excellent schools and some of the finest homes in the state
- Vinings — A small community just across the Chattahoochee River, Vinings offers a combination of historic homes, new constructions, townhomes and condos around its own delightful town center
- Brookhaven — A coveted upscale section of Buckhead with excellent shopping, restaurants and modern dwellings
- Chamblee — A small suburban city just east of Brookhaven with some surprisingly affordable housing offerings
3. Discover Metro Atlanta’s East Side Gems
When scoping out Atlanta real estate, don’t forget to look to the east. The east side neighborhoods and suburbs have a personality and character all their own, offering ample shopping and dining, generally low crime rates and an overall small-town feel. Even so, these neighborhoods remain well-connected to the rest of the Atlanta metro via the MARTA blue line. For you as a potential buyer, this means you can enjoy the convenience of metro living at more suburban-like prices. Take a closer look at these east side gems:
- Decatur — While convenient to Atlanta, Decatur is a city all its own featuring excellent schools, lovely neighborhoods, a cute downtown and close proximity to Emory University and Agnes Scott College
- Avondale Estates — A picturesque community east of Decatur with a Tudor-style downtown area
- Druid Hills — A community of winding neighborhood roads and home to Emory University and the Druid Hills Golf Club
4. Retreat to the Peaceful Suburbs of Metro Atlanta
If you want a quieter pace of living away from the hustle and bustle of the city — or if you simply want to enjoy more home for the money — the Atlanta suburbs are among the best places to look. In particular, the suburbs north of the Atlanta Perimeter have rapidly grown in popularity over the past years by offering plenty of shopping, dining, recreation and entertainment options without the need to venture downtown (of course, if you want to go downtown, it’s easy to get there, too!). We recommend scoping out the following Atlanta suburban communities:
- Smyrna — One of Georgia’s fastest-growing suburbs with lovely homes, green spaces and a popular Market Village for shopping and dining
- Marietta — A vibrant city adjacent to Kennesaw Mountain and also home to Six Flags White Water
- Sandy Springs — A popular suburban community with great schools, proximity to shopping and outdoor recreation
- Dunwoody — Home to Perimeter Mall, Dunwoody is one of the most vibrant commercial and tech hubs outside Atlanta while also offering some fantastic residential real estate
- Roswell — Located along the scenic Chattahoochee River, this historic community is one of the most popular residential areas north of the Perimeter
- Norcross — A lovely small town with a historic downtown district and plenty of green spaces
- Tucker — Recently incorporated in 2016, this historic railroad community sits northeast of Atlanta and offers quiet small-town living
At Atlanta Fine Homes Sotheby’s International Realty, our team of real estate experts has the latest data on fluctuations in the Atlanta housing market, as well as detailed, up-to-date information on the best neighborhoods in Atlanta to invest in real estate. If you are looking to buy an Atlanta home in 2020, we can utilize this information to help you get the best home at the best price. For an appointment, give us a call at 404.237.5000.