ATLANTA — As the weather cools off, so does homebuying, according to real estate adviser Sarah Strohschein. She said home prices overall are still up 15% in Atlanta from last year.
The local market has about half the inventory as a normal, balanced market. Buyers, Strohschein said, usually take a break for the holidays.
While it's still pricey to buy a home now with mortgage rates gradually coming down, real estate experts advise that potential homebuyers don't have to compete with as many buyers around the holidays.
"I'm seeing a lot more seller concessions, meaning either sellers are coming off list price, they're assisting with rate buydowns or giving money towards closing," Strohschein said. "We’re expecting when [the average mortgage rate] hits six, we’ll see a lot more buyers entering. And I think after the holidays, people will be ready to get back out in the market again.”
The Federal Reserve recently announced it could lower the federal fund's interest rate at least three times in 2024. It comes after nearly two years of the Fed raising rates to combat inflation. While they're not directly related, home prices tend to go down as well when interest rates fall.
Smith predicts the interest rate cuts could start happening by next summer and spread out over the latter half of 2024. Meantime, Strohschein is looking forward to the potential positive impacts on homebuyers.
“If you can afford the payment, and you’re planning on living in Atlanta for at least five years, the data shows us when you look up the average sales price year over year – it’s quite an amazing investment," Strohschein said.