If you are trying to decide whether or not to sell your home right now, you’re not alone. Many of my clients are asking me this same question. Undoubtedly, some unpredictability in the market may be causing sellers to pause, but this still could be an excellent time to sell.
Ultimately, if you are a seller, there are many variables that you will need to evaluate based on your personal situation. However, there are also some broad market considerations.
I will address three primary broad market considerations in this post. I hope to help you make a more informed decision if you are debating whether to sell your home in Atlanta.
There is a very extreme supply shortage in Atlanta for a growing population. As of June 2022, the Atlanta metro was at 1.6 months of supply, compared to June 2019, when Atlanta was at 3.2 months of supply.
A healthy supply generally rests between 4 to 6 months for a balanced market. We were not there pre-pandemic, and we are not there now.
The challenge Atlanta has is it continues to be one of the fastest-growing metroplexes in the country. People move to Atlanta frequently for jobs and need homes, so there will always be buyers regardless of market conditions. Then you layer in extreme supply challenges and recognize that even with the current uncertainty, it’s still a seller’s market.
If you read the news headlines, it would be easy to believe that all buyers are waiting on the sidelines. Historically, rising rates meant fewer buyers. But that is just not what I am seeing at the moment.
The reality is now, with the supply shortage mentioned above, demand is still strong. In June of this year, the average number of days homes were on the market was 15. Compared to June 2019, pre-pandemic, the average number was 38.
Until the inventory shortage improves, we will still have moderate to strong demand in the metroplex. And due to ongoing supply challenges with homebuilders, the inventory shortage could take several years to improve.
Rate Uncertainty and Home Prices
Interest rates have risen this year, and that can give buyers pause. However, rates have been pulling back recently. A rate pullback could incentivize buyers concerned about rates going even higher later this year or next.
Likewise, home prices have started to fall with rising rates, decreasing by around 3% in July. This pullback is drawing buyers back into the market, which could lead to an uptick in home sales over the next several months.
Overall, we are still in a seller’s market, and now could still be an excellent time to sell your home. Selling soon mitigates some of the uncertainty of future drops in home prices and takes advantage of the peak home buying season. Likewise, you will be able to take advantage of the supply shortage and ongoing demand in the Atlanta market.
If you are ready to start exploring options to sell your home in this complex market, then please do not hesitate to contact me.