With the world going crazy everyone is wondering:What will happen to Real Estate Values in Atlanta GA? I wish Realtors in Atlanta had all the answers. All we can do is look at the present and past and try to draw some conclusions.
Coronavirus and Atlanta GA Real Estate
Lets talk about what is happening right now. This is very uncharted territory with a strange combination of things going on. The coronavirus obviously has safety on everyone’s mind. We are taking all necessary precautions. We are trying to only do vacant showings, with most properties being thoroughly cleaned between showings. We are also setting up remote video closings, which is brand new to GA.
What we also have is VERY low interest rates, which is motivating buyers. Now at the same time we have many people out of work or on unemployment. We are seeing an influx of first time buyers to the market. We expect interest rates to climb again after all the refis.
What we are currently seeing is a bit of a “holding pattern”. Usually in crisis we see either a massive sell due to panic, or massive buying frenzy. Everyone is kind of waiting to see what happens.
Will Home Values Drop?
We don’t know for sure, buy with the economic distress and impending inflation we should be prepared. Now how much if at all will prices drop? Well, lets look at a worst case scenario.
So here we see the last housing market crash around 2010 (which was severe) dropped at the most 20%. Now keep in mind it also took us 3 years to get to this point. We do expect this to be faster with all that is going on. We are expected to see more Foreclosures and Short Sales as the months go on. With Mortgage Forgiveness going on for about 4 months, that mean in about 7 months we will see a spike in Foreclosures.
What does all this mean for you?
If you are buying
You might see better prices, but higher interest rates and larger down payments. Also see some current Buyers Guides here.
If you are selling
You might need to price competitively and start asking prices around a 5-10% drop. You can think worst case scenario and if you’re house sells for 20% less of current value. Now, most people will be ok. We are going to be down from a very high price point which peaked about 12 months ago.
At this point it is all still speculation. Contact us today for a free consultation at 706-591-8328. Or if you need to Sell Your Home Fast For Cash go here.