According to Realtor, with, Atlanta's price growth is projected to be 3.5% (versus the national average of 2.9%), while sales are projected to grow 10% year-on-year. Housing prices in the greater Atlanta area continued to rise, but a growing inventory may cause it to become a seller's market in the coming months. At least 75% of homes have sold above the list price that comes from multiple offers, some of which have no contingency. Home prices have increased largely due to limited supply and fierce competition for available housing.
Over the past 12 months, real estate prices in Fulton, Atlanta City have declined, over the past 12 months. The Federal Reserve Bank of Atlanta's homeownership affordability monitor rates the metropolitan area as affordable for households earning the area's median income, but that's changing rapidly. Thirty-five percent of homes have sold above the sales price, representing a massive 125% increase from last year. Although home prices are quite high, this neighborhood is currently a buyer's market and this is the right time to invest in a property.
While some economic activity will resume as the state gradually reopens, the housing market is expected to remain slow for the next few months until the economy fully opens up. Net migration has led to an increasing demand for housing in Atlanta, which cannot be met by the current pace of new construction. Kanell, the economics writer for the AJC, has been reporting on jobs, housing and the economy at the AJC for nearly two decades. Meanwhile, some buyers who have stretched their finances to make buying a home a reality, are now facing rising prices for almost everything and staying with the rent, experts say.
Atlanta rental prices plummeted during the most severe period of the coronavirus outbreak, when much of the city's economy was in lockdown. At the same time, the industry is adapting to the current environment by conducting business using technologies such as virtual projections and electronic signatures to help buyers and sellers with their housing needs in the face of these challenges. Home prices also rose despite a drop in sales in April, as available housing inventory remained low across the metropolitan area. As the city continues to experience an economic boom, turnkey property prices in Atlanta are projected to increase in the coming years.
Since the end of December, interest rates on the 30-year average fixed-rate mortgage have nearly doubled to over 5%, prompting predictions of an end to bidding wars and runaway home prices.