Real Estate Roundup for Fall 2024
Local real estate experts share insight into the current market and provide helpful tips to buyers and sellers.
The AJT asked a panel of local realtors to discuss the current state of the metro Atlanta real estate market. Topics included key challenges in the current residential market, emerging trends, and advice for both buyers and sellers. Read on to find out about Atlanta’s current real estate market.
Debbie Sonenshine
Coldwell Banker Realty
What are some key challenges in the current residential real estate market?
Interest rates continue to be a hot topic. Many of today’s buyers have only known rates that were at historic lows, and it is taking time to get adjusted to rates that more closely match longer term averages. Starter home new construction is nearly non-existent close in, and a large percentage of lower priced resale homes were purchased by national investors for rentals. That trend is starting to reverse and that will create some opportunities for first-time homebuyers. I also anticipate that we will see some movement in the conversion of properties originally built for apartment to condominiums as the rental market softens.
Are there any emerging trends in today’s market?
Buyers are more interested in purposeful space efficiency than large unused spaces. Buyers of all ages are right-sizing, upwards and downwards, to meet their specific needs. Outdoor entertainment spaces … pools, outdoor kitchens, activity zones … continue to be in high demand. Expansive pantries are a key feature for deluxe kitchens and the demand for spa-zone primary bathrooms has never been higher.
Can you give any specific advice to potential homeowners looking to buy either this year or in 2025?
Focus more on finding a home that meets the current and future needs for your family and less on interest rates. Interest rates rise and fall based on the current 10-year Treasury bond yields, which is beyond your control. While buyers wait on a small decrease in the 30-year mortgage rate, most properties continue to rise in value by a few points every year. The home that you waited to buy will likely cost more with each passing month while you are waiting for interest rates to drop. A home is certainly an investment, but it is also where your family thrives … a priceless intangible.
Conversely, any advice for those looking to sell in 2025?
Sellers are generally also buyers, so the advice regarding buyers also applies to sellers. It is also critical to develop a pricing and negotiating strategy to ensure that you are well positioned to capture the interest of the most buyers. Buyers are looking for move-in ready properties, so take the necessary steps to handle any deferred maintenance and ways to make your property stand out from the competition. Carefully review a comparable property analysis to ensure the best list price before starting the marketing campaign to avoid multiple downward pricing adjustments.
Eydie Koonin
Atlanta Fine Homes Sotheby’s International Realty
What are some key challenges in the current residential real estate market?
Low inventory, especially renovated or new construction in top school districts, is still the No. 1 issue when buyers are looking to purchase a new home. Atlanta had excessive growth in the suburbs in the 1990s and early 2000s. Many of these homes are now coming to market since homeowners are becoming empty nesters, others wanting to be closer to family and looking to purchase smaller homes with more walkability factors closer to town squares.
The issue we are seeing is that the value of the home is still based on number of bedrooms, bathrooms, locations, features, etc. and they are still high. However, today’s buyers are not keen to purchase a home at top market price and then renovating it. Buyers prefer that the property has already been updated.
Yet, we real estate professionals understand that it’s difficult to renovate a home while still living in the property. This is a conundrum sellers and agents are facing today. There are simple upgrades and trends that can be made like EV chargers, garage storage systems, automated home systems, paint and total decluttering and staging. Buyers tend to connect to a property easier when it’s freshly painted, clean and organized.
Can you give any specific advice to potential homeowners looking to buy either this year or in 2025?
The best advice I give buyers who want to make a purchase now or even in 2025 is to start the process early with a real estate agent who understands today’s market. Speak with a lender to understand your buying power, the interest rates, insurance considerations and what you need to do prior to making an offer on a home.
As of August 2024, Georgia law now requires buyers to sign a buyer brokerage engagement agreement before looking at the first property. The buyer’s agent compensation is a buyer’s fee, however, many sellers are still offering 3 percent to buyer’s agents, eliminating the cost to the buyer. This is especially import for first time home buyers who may not have the same resources as move up buyers.
Conversely, any advice for those looking to sell in 2025?
The last several years have been a seller’s market but now the market is balanced and actually leaning towards becoming a buyer’s market again. If you are planning to sell in the next few months, meet with an agent now, so you have plenty of time to get your home in “show ready” condition. Right pricing is the single best advice I can give sellers who may end up receiving multiple offers. Overpricing a property today, then reducing it a few times, may ultimately, put less money in your pocket once it sells.
Kelsey Barocas
Harry Norman Realtors, The Barocas and Feldman Team
What are some key challenges in the current residential real estate market?
The Atlanta real estate market, like many others across the nation, is experiencing several challenges. One significant issue is inventory shortage. Many homeowners have been reluctant to sell, partly due to economic uncertainties and rising interest rates, creating a scarcity of available homes. This shortage has intensified competition among buyers, often leading to bidding wars and pushing home prices upward.
Affordability is another critical challenge. With property values rising, many potential buyers, particularly first-time homebuyers, find it difficult to enter the market. This is compounded by interest rates, which elevate the cost of financing a home.
Are there any emerging trends in today’s market?
Despite these challenges, several trends are emerging in the Atlanta real estate scene. One notable trend is the growing demand for suburban homes. The pandemic has accelerated remote working arrangements, encouraging more people to prioritize larger living spaces over proximity to city centers. This shift has increased demand in outlying areas, and is fueling growth in those typically less sought-after locations.
Renovated homes are not only selling faster but also commanding higher prices compared to their unrenovated counterparts. As home prices soar, and inflation impacts household finances, many buyers find it challenging to save for future renovations. Consequently, they prefer to purchase homes that already come with modern updates and features, ready to move in with all the desired amenities included.
Can you give any specific advice to potential homeowners looking to buy either this year or in 2025?
For those considering buying a home in Atlanta, 2024 or 2025 presents both opportunities and challenges. First, it’s crucial to get pre-approved for a mortgage. This not only helps determine what you can afford but also signals to sellers that you are a serious and qualified buyer. Consider working closely with a knowledgeable local real estate agent who can provide insights into neighborhood trends and property values. Given the competitive nature of the market, this partnership can be invaluable in finding off-market deals and making timely offers. Prospective buyers should also keep a close watch on interest rate trends. Locking in a lower rate as soon as possible can significantly impact affordability over the life of the loan. Further, be flexible in your criteria; Inventory is still historically low, and broadening your search area or property types considered can uncover more options, enhancing the likelihood of finding a suitable home.
Conversely, any advice for those looking to sell in 2025?
If you’re planning to sell your home in 2025, preparing early can capitalize on market conditions. First impressions matter, so invest in curb appeal and essential repairs. A well-maintained home attracts more buyers and can lead to higher offers. Pricing your home correctly is crucial. Engage a real estate agent to conduct a Comparative Market Analysis (CMA) to set a competitive price based on similar recent sales in your area. Overpricing can deter buyers, while strategic pricing can create more interest and lead to multiple offers.
Finally, consider staging your home. Professional staging can highlight your home’s strengths and make it more appealing to potential buyers. Additionally, leveraging digital marketing, including high-quality photos, virtual staging, and virtual tours, can maximize exposure in today’s online-driven marketplace.
In summary, while the Atlanta real estate market presents challenges, opportunities abound for those prepared to navigate its complexities. By staying informed and strategic, both buyers and sellers can achieve their real estate goals.
Melanie White
Harry Norman Realtors
What are some key challenges in the current residential real estate market?
These are all great questions, let’s take a closer look. There are many challenges that influence today’s real estate market: supply and demand, interest rates, inflation, and regulatory factors top the list. The price gap between buyers and sellers has been challenging in 2024 and will likely continue in 2025. Sellers are holding onto hope for 2021 prices while buyers are bidding on homes with pricing from 2018. Therefore, we have seen a considerable increase of DOM (days on market), and longer negotiations on purchasing.
Add to that, this year’s higher interest rates have made it more expensive for buyers to purchase homes and many are being priced out of the market, thus choosing to delay purchasing. In turn, this discourages sellers from selling to keep their low interest rates.
Plus, inventory still remains a challenge, as buyers’ demands are changing. Working remotely is still popular for many, especially since COVID, and buyers are looking for homes that provide ample office space. We have also seen the increase of popular inside and outside zen and relaxation areas as well as luxurious outside entertainment areas.
So, our biggest challenge since the election is the uncertainty of where we are headed economically. This local and global economic uncertainty could result in stricter lending practices making it even more difficult to obtain a loan to purchase.
Are there any emerging trends in today’s market?
With today’s market trends, we are seeing the increase of virtual tours and 3D walk through options making it easy for local and international buyers to tour and purchase homes without stepping inside the front door. The quick emergence of AI-driven platforms is also a rapidly growing trend. These platforms can enhance searches, personalize listings, predict market trends, and streamline the buying process.
As climate change and sustainability concerns rise, energy efficient and more sustainable homes are in demand, as well as energy efficient appliances.
Can you give any specific advice to potential homeowners looking to buy either this year or in 2025?
So, for the immediate future, homebuyers in 2025 will face many challenges. Just as the interest rates fluctuated in 2024, expect to see some more fluctuation and hope to see stabilization later in 2025. Buyers need to keep a close eye on interest rates and how they can affect their payments. Saving for the downpayment is still key, but buyers also need to consider saving for inspections, closing costs and potential renovations in 2025. Mortgage lenders will continue to value strong credit and a score of 740 or higher will give you more interest rate options. Adjustable-rate mortgages are becoming more popular as many buyers are attracted to the initial lower interest rates and monthly payment ARM’S offer, especially if they plan to move before the fixed rate period ends.
Conversely, any advice for those looking to sell in 2025?
Just as important, sellers should choose a real estate agent who understands the evolving dynamics of the 2025 housing market and can help position their home effectively. Look for agents who are tech-savvy and have experience with digital marketing tools and virtual showings. Sellers should maximize curb appeal, declutter the home and add energy-efficient features that are attractive to buyers. Updated lighting, appliances, kitchens and bathrooms are the main areas to focus to have a home market ready. The real estate market in 2025 will experience a gradual recovery and transformation influenced by various economic trends. Home prices are expected to continue to rise two percent to five percent year over year. Easing mortgage rates could improve affordability, encouraging more transactions. The market in 2025 definitely shows signs of optimism.
Michael Schiff
Atlanta Fine Homes Sotheby’s International Realty, The Schiff Team
What are some key challenges in the current residential real estate market?
The biggest challenge still remains the lack of inventory in certain price points of the market, especially homes that are prices at $1,000,000 or less. The tight inventory is creating multiple offers for brand new listings that are priced correctly and are in the best condition. The current market conditions make it extremely challenging for someone who wants to buy their next home, but have to sell their current home first. Most sellers are not eager to take a contingency from a Buyer on selling their home because they are taking their home off the market without a guarantee that the potential Buyer can purchase it. There are creative options for this type of buyer such as opening a Home Equity Line of Credit on their current home and using that line of credit for the down payment for their next home purchase.
Can you give any specific advice to potential homeowners looking to buy either this year or in 2025?
Buyers in today’s market need to make decisions quickly. If a Buyer sees a home they like, they should be proactive and make an offer. Otherwise, they will possibly find themself in a multiple offer situation which means paying more for the house or losing it to another buyer. A seasoned Realtor with local market knowledge can help you navigate the buying process and make sure that the Buyer’s interests are protected throughout the negotiations.
Conversely, any advice for those looking to sell in 2025?
The most important thing when it comes to selling one’s house is to be appropriately priced and being in great condition. Most buyers want to unpack their boxes and say they are home and do not want to take on major projects. If Buyers do take on some work, it usually is a light cosmetic project, such as painting or replacing flooring.
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