Is it a Good Time to Buy a House?
Updated: Jan 11
The National Association of Realtors has predicted the metro-Atlanta area to be one of the hottest markets in 2023. The housing market has undoubtedly been on the rise in recent years, with home prices and sales increasing. January 2023 is much different than the market we saw in January 2022. With so many information sources and constant changes, let's start the new year by reviewing some facts.
According to data from the Georgia Multiple Listing Service, the median sales price of homes has increased by nearly 10% in the past year alone, and the number of homes sold increased by about 7%. For December 2022, single family residences inventory is up by 77.6%, with pending sales being down 47.9%, and closed sales down 39.6.0% compared to last year. This combined has increased the months of supply to 2.5 months compared to 0.9 months in December 2021. As a result of increased supply and interest rates, price reductions are up by +27.0 percentage points to 48.7% of all closed sales. This change is a result of the volatility of mortgage rates throughout 2022. As I write this, the average rate for a 30-year mortgage sits around 6.14%. The historical average rate for a 30-year fixed rate is 7.76%. Despite the volatility over the last 12+ months, interest rates are still low.
So what does all this mean?
2023 is expected to lead us to a more normal market, think 2019 or 2014. Despite the strong demand for housing, the Georgia market has remained relatively stable, with low levels of inventory and few signs of overbuilding. This is in contrast to other parts of the country, where a glut of new construction has led to a slowdown in price appreciation. Housing inventory and interest rates are both expected to stabilize throughout this year. Home prices are expected to drop slightly or slightly increase, depending on your source.
The Georgia housing market is in a strong position, with robust demand and relatively stable conditions. While there are always risks in any market, Georgia is well-positioned to continue its upward trend in the coming years.
There's no way to time the market
Buying a home is one of the most significant financial purchases of a person's lifetime, and the process can quickly feel overwhelming without the right team of professionals. There will never be a blanket yes or no to 'Is it a good time to buy a house?' The answer to that question is highly subjective, and only you can answer it. The real question is, can you afford to buy a home right now? And does it make financial sense? To learn more, contact our team.
Ehlinger Team - Buyer's Agent