With mortgage rates rising to the highest levels seen since 2009, some contraction in demand is expected this year.
However, I am still optimistic about the Atlanta residential real estate market. Growth and development can be seen throughout the city, yet the supply of residential real estate remains at record lows.
With supply at such extreme lows, it’s difficult to foresee a massive contraction of the Atlanta residential real estate market.
For context, in 2009, when mortgage rates were around the same level as today, there was an oversupply hovering around 12 months. As of May 2022, the Atlanta residential real estate market’s supply is at 1.2 months.
With such extreme supply constraints, I still believe that buyers and sellers can have confidence in the Atlanta market.
However, buyers will become more meticulous and diligent in their search to ensure they are making good long-term investment decisions.
For this reason, sellers should be aware of what type of home today’s buyers want. Below are four major themes the average buyer is looking for in a home.
Smaller Flexible Homes
According to Realtor.com, bigger isn’t better. Millennials, the largest buyer cohort in Atlanta, are looking for reasonably sized spaces that are efficient and functional. These buyers want the ability to do more with less.
Likewise, walkable urban areas with parks, restaurants, and retail are more appealing to buyers than sprawling suburbs.
If you’re a seller, changing your home’s size isn’t a cost-effective option. But you can leverage this information to appeal through design and location highlights.
Upgraded outdoor space
Over the pandemic, buyers prioritized outdoor spaces from being stuck inside for too long. Swimming pools, outdoor kitchens, and firepits have all become sought-after features of buyers.
However, this doesn’t mean you need to go out and build a pool to attract buyers. Simple landscaping and modernization of your outdoor space can go a long way in displaying value.
Better Homes and Gardens suggests accessible opportunities such as new rugs, outdoor plants in planters, new patio furniture, and lighting.
Flexible and functional shared living spaces
With more time spent at home, completely open floor plans are becoming less popular. Instead, buyers are searching for function and flexibility in a floor plan.
This means that buyers are looking for the ability to partition out spaces, if needed, for things like work, study, and working out.
Even if your floor plan is open, consider how you could partition out spaces. For example, you could incorporate stylish room dividers or add partition doors, like pocket doors, to large openings.
Separate home office
Regarding spaces for work, a home office space is one of the most sought-after features buyers have asked about.
Since many people are still working remotely or in some hybrid situation, they want the ability to have a quiet designated work area.
Even if you don’t have a specific space dedicated to a home office, you can stage a guest bedroom as an office/bedroom combination. And if this isn’t an option, consider how you could carve out an office space in the kitchen or living area.
In summary, if supply remains at record lows there will be buyers. However, buyers are becoming more particular. Therefore, sellers will need to ensure their home meets the buyer’s particular needs.
If you are interested in selling your home in this complicated and competitive market then please do not hesitate to contact me.