First, let us address the major question that everyone has: Will the real estate market crash (specifically, what about in Georgia)? The answer from a majority of experts is a resounding "No." There are a number of reasons why the real estate market is strong and is showing signs of stability. As of the writing of this blog, the market is expected to remain resilient and strong.
One of the key reasons for stability in the state of Georgia (and many other states) is the consistent demand for housing. People will always need a place to live and the supply and demand balance in our area is extremely healthy due to the economy and workforce (demand is higher in Georgia versus other states). Georgia has a very diversified economy with multiple industries contributing to its strength. This means our real estate market is not reliant on a single sector, thereby reducing the risk of a sudden downturn.
We have seen consistent job growth nationally and a stable influx of new residents (see below where there are more job openings than there are unemployed people in the US). In Georgia, stable demand for housing has kept the property values increasing and inventory down even when other states have seen a price downturn and inventory increase. Georgia is seeing more city centers, community areas, and town centers pop-up all over which is a great sign of a thriving market.
While we have seen property value increases begin to plateau nationally, there is no real concern of house values taking a downturn. Mortgage rates, while higher than 2020-2022, are still at or below the historical average of 7.81%. This means homeownership is still within reach and encourages the continuation of the thriving market.
Additionally, lending practices and regulations have become much more stringent and will prevent the kind of risky lending that contributed to the 2008 crash. The regulations now ensure that buyers are generally qualified and can afford their homes. Even with all of the extra hoops to jump through and increasing interest rates, we are seeing stable, sustainable, and positive growth related trajectories.
It is important to remember when looking for a home that a house is (often) a long-term investment. While we have seen fluctuations occur, they are generally short-term. Historically speaking, property values tend to only appreciate over time. Further lowering the possibility of a collapse is that a large number, nearly 40%, of homeowners own their home outright and a large number, 76%, of people have a rate below 4%. These would not be considered "at-risk" investments.
Fun fact: did you know that one of top methods of wealth transfer between generations is through real estate? You're investing not only in your own future, but for those that will survive you.
The goal should to always be informed so that you can make the best decision for you (and your family/loved ones). At this point in time, our local real estate market is in a strong position. Of course there are always risks inherent in any market, but the factors supporting our market's stability far outweigh the concerns.
If you are considering buying or selling, I am here to guide you through the process and to help you make informed decisions that align with your goals. Please feel free to ask any questions you may have for me and I will be sure to keep you updated on any relevant market trends and developments. I am here to provide you with information and the support you need to navigate your personal interests in the real estate market successfully!
Graham Witt - Realtor w/ Keller Williams Atlanta Partners
Owner: Graham Witt Realty
Director of Sales: Team Tordik Properties
C: 847-507-7126
O: 678-341-2900
E: grahamwitt@kw.com
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