As we enter 2024, real estate remains a topic of significant interest and importance. While this year will certainly bring its own set of trends and questions by the end, the end of 2023 and what’s top of mind right now can give us some insight into what’s to come. If you’re thinking about entering the real estate market as either a buyer or a seller this year, it is crucial to stay informed about these developments. Following are some of the most googled questions from the end of 2023 that will help us navigate a new year of buying and selling in the Atlanta area.
What Is the Current State of the Real Estate Market in 2024?
As we advance into 2024, the real estate market is showing signs of stabilization. The tumultuous conditions of high mortgage rates and limited inventory that dampened affordability in 2023 are expected to ease. This year is seen as a turning point, with a forecast of somewhat rebounding home sales, decreasing mortgage rates, and more sellers listing their homes. However, the primary issue remains housing affordability​​.
How Are Mortgage Rates Impacting the Market?
Mortgage rates, a major obstacle for homebuyers in 2023, have started to ease. With the Federal Reserve signaling possible rate cuts, mortgage rates have begun to drop. For instance, Freddie Mac’s 30-year fixed-rate loan averaged below 7% for the first time since mid-2023. Although a dramatic drop into the 3% or 4% range isn't expected, this downward trend is likely to continue, making home buying more accessible​​.
What About the Inventory of Homes for Sale?
There is good news for buyers regarding housing inventory. After a year of reluctance by sellers to list their homes in 2023, due to low mortgage rates they had locked in, 2024 is expected to see an improvement in the number of homes for sale. Overall, inventory could increase by as much as 30% compared to last year. This is a critical development that could ease the intense competition in the housing market​​.
Will Home Prices Change?
While there will be some improvement in housing supply and mortgage rates, the factors that have kept home prices high will persist. Inventory levels are still below demand, keeping upward pressure on prices. Therefore, on a national level, prices are not expected to plummet dramatically. Most experts forecast that home prices will remain flat or decrease by about 1% in 2024​​.
Are Home Sales Expected to Increase?
Yes, most housing analysts anticipate an improvement in home sales this year. Sales are projected to increase due to improving market conditions. The range of predictions varies, with some forecasts suggesting a modest 0.1% year-over-year increase and others expecting a more significant rise. This uptick in sales is tied to the hope that mortgage rates will continue to lower, encouraging more buyers and sellers to enter the market​​.
What Are the Specific Trends for Sandy Springs, GA Real Estate?
In Georgia, including the Sandy Springs area, a steady rise in home prices is expected, albeit at a slower pace. The supply of new homes continues to be low, a trend that will persist into 2024. The Atlanta-Sandy Springs-Alpharetta MSA has witnessed significant price appreciation, with a notable rise in the house price index. This suggests a returning interest from buyers in the market. However, due to low inventory, bidding wars have become common, with homes often receiving multiple offers​​​​​​.
The Atlanta metro area, encompassing Sandy Springs, has experienced a significant increase in rent, outpacing wage growth and raising concerns about housing affordability​​. Additionally, the National Association of Realtors reports a decrease in single-family housing permits in Atlanta, indicating challenges in new home construction​​. However, a recent increase in construction jobs could signal an upcoming easing in inventory constraints​​.
Furthermore, Southeast Atlanta, including the Sandy Springs area, is poised for higher appreciation compared to other parts of the city. This region has been recognized as an “undervalued” market, attracting more out-of-state and first-time homebuyers due to its affordability and rising demand for new developments​​.
The Atlanta metro area, encompassing Sandy Springs, has experienced a significant increase in rent, outpacing wage growth and raising concerns about housing affordability​​. Additionally, the National Association of Realtors reports a decrease in single-family housing permits in Atlanta, indicating challenges in new home construction​​. However, a recent increase in construction jobs could signal an upcoming easing in inventory constraints​​.
Furthermore, Southeast Atlanta, including the Sandy Springs area, is poised for higher appreciation compared to other parts of the city. This region has been recognized as an “undervalued” market, attracting more out-of-state and first-time homebuyers due to its affordability and rising demand for new developments​​.
Expert Guidance in Navigating the 2024 Real Estate Market
The real estate landscape in 2024 presents both challenges and opportunities, particularly in Sandy Springs, GA. Understanding these trends and predictions is essential for both buyers and sellers. As market conditions evolve, professional guidance becomes ever more critical in making informed decisions.
Discover Sandy Springs, GA Real Estate Opportunities with Kelly Boudreau
Navigating the Sandy Springs, GA real estate market requires expertise and insight. For those seeking to buy or sell properties in this dynamic market, Kelly Boudreau offers unparalleled professional guidance. With a deep understanding of local trends and a commitment to client success, Kelly is your go-to expert for all your real estate needs in Sandy Springs, GA. Explore the opportunities waiting for you in this vibrant market and make informed decisions with Kelly's expert assistance. Contact Kelly Boudreau to embark on your real estate journey in Sandy Springs, GA.
