In living in Cumming Ga (North Atlanta), one of the great features of this area is how close we are to the mountains (about 45 minutes north). No these are not the mountains you see in Co or Utah but they are amazing. Camping is outstanding and if you like hiking/backpacking you will really like the Ga Mountains. Then there are two oceans that are easy drives. We vacationed at Fripp Island South Carolina and it is about 340 miles away. Here is most of my family at a low country boil.
Atlanta is a great place to live.
Comparing real estate metrics from one year to another can be challenging in a normal housing market. That’s due to possible variability in the market making the comparison less meaningful or accurate. Unpredictable events can have a significant impact on the circumstances and outcomes being compared.
Comparing this year’s numbers to the two ‘unicorn’ years we just experienced is almost worthless. By ‘unicorn,’ this is the less common definition of the word:
“Something that is greatly desired but difficult or impossible to find.”
The pandemic profoundly changed real estate over the last few years. The demand for a home of our own skyrocketed, and people needed a home office and big backyard.
It was a market that forever had been “greatly desired but difficult or impossible to find.” A ‘unicorn’ year.
Now, things are getting back to normal. The ‘unicorns’ have galloped off.
Comparing today’s market to those years makes no sense. Here are three examples:
If you look at the headlines, you’d think there aren’t any buyers out there. We still sell over 10,000 houses a day in the United States. Of course, buyer demand is down from the two ‘unicorn’ years. But, according to ShowingTime, if we compare it to normal years (2017-2019), we can see that buyer activity is still strong (see graph below):
We can’t compare today’s home price increases to the last couple of years. According to Freddie Mac, 2020 and 2021 each had historic appreciation numbers. Here’s a graph also showing the more normal years (2017-2019):
We can see that we’re returning to more normal home value increases. There were several months of minimal depreciation in the second half of 2022. However, according to Fannie Mae, the market has returned to more normal appreciation in the first quarter of this year.
There have already been some startling headlines about the percentage increases in foreclosure filings. Of course, the percentages will be up. They are increases over historically low foreclosure rates. Here’s a graph with information from ATTOM, a property data provider:
There will be an increase over the numbers of the last three years now that the moratorium on foreclosures has ended. There are homeowners who lose their home to foreclosure every year, and it’s heartbreaking for those families. But, if we put the current numbers into perspective, we’ll realize that we’re actually going back to the normal filings from 2017-2019.
There will be very unsettling headlines around the housing market this year. Most will come from inappropriate comparisons to the ‘unicorn’ years. Let’s connect so you have an expert on your side to help you keep everything in proper perspective. Call me today at 770 722-7010 if you are considering selling your home and want to know what the market is like in your community.
Everywhere you look, people are talking about a potential recession. And if you’re planning to buy or sell a house, this may leave you wondering if your plans are still a wise move. To help ease your mind, experts are saying that if we do officially enter a recession, it’ll be mild and short. As the Federal Reserve explained in their March meeting:
“. . . the staff’s projection at the time of the March meeting included a mild recession starting later this year, with a recovery over the subsequent two years.”
While a recession may be on the horizon, it won’t be one for the housing market record books like the crash in 2008. What we have to remember is that a recession doesn’t always lead to a housing crisis.
To prove it, let’s look at the historical data of what happened in real estate during previous recessions. That way you know why you shouldn’t be afraid of what a recession could mean for the housing market today.
To show that home prices don’t fall every time there’s a recession, it helps to turn to historical data. As the graph below illustrates, looking at recessions going all the way back to 1980, home prices appreciated in four of the last six of them. So historically, when the economy slows down, it doesn’t mean home values will always fall.
Most people remember the housing crisis in 2008 (the larger of the two red bars in the graph above) and think another recession will be a repeat of what happened to housing then. But today’s housing market isn’t about to crash because the fundamentals of the market are different than they were in 2008. Back then, one of the big reasons why prices fell was because there was a surplus of homes for sale at the same time distressed properties flooded the market.
Today, the number of homes for sale is low, so while home prices in Alpharetta, Cumming, Milton and Suwanee Ga may see slight declines in some areas and slight gains in others, a crash simply isn’t in the cards. So far this year the median sales prices are up in these North Atlanta Cities.
What a recession really means for the housing market is falling mortgage rates. As the graph below shows, historically, each time the economy slowed down, mortgage rates decreased.
Bankrate explains mortgage rates typically fall during an economic slowdown:
“During a traditional recession, the Fed will usually lower interest rates. This creates an incentive for people to spend money and stimulate the economy. It also typically leads to more affordable mortgage rates, which leads to more opportunity for homebuyers.”
This year, mortgage rates have been quite volatile as they’ve responded to high inflation. The 30-year fixed mortgage rate has hovered between roughly 6-7%, and that’s impacted affordability for many potential homebuyers.
But, if there is a recession, history tells us mortgage rates may fall below that threshold, even though the days of 3% are behind us.
You don’t need to fear what a recession means for the housing market. If we do have a recession, experts say it will be mild and short, and history shows it also means mortgage rates go down. I expect the North Atlanta market home values to remain strong - with slight increases for the year. If you are considering buying or selling a home this year and want to see how the current market impacts your home's value - text or call me at 770 722-7010. I will strive to prove to you that I am the best Realtor in Atlanta.
The housing market’s been going through a lot of change lately, and there’s been uncertainty surrounding what will happen this spring. You may be wondering if more homes will go on the market, what’s next with home prices and mortgage rates, or what the best advice is for someone in your position right now.
Here’s what industry experts are saying right now about the spring housing market and what it means for you:
“We see more competition among buyers . . . Housing supply also tends to grow during the spring months. And this is also the time of year when relatively more migration happens, as people graduate and move elsewhere looking for jobs.”
“I don’t expect big moves in prices in the span of a month, but like the flower buds of spring, the housing market is showing signs of improvement. A pick up in activity with inventory still low does bode well for home prices.”
“If you can find a home you love and can afford at today’s prices, don’t wait. Home prices in most of the country are unlikely to crash, and mortgage rates will only come down very gradually if they decline at all this year.”
“The market is still much friendlier this spring for buyers who can overcome affordability hurdles, but buyers are going to see more competition than they might expect because there are not many homes on the market to go around. New listings are increasing, which they almost always do this time of year, but not nearly as quickly as usual.”
If you’re thinking about selling your house, this spring’s a great time to do so while inventory is still so low. And if you’re in a good position to buy, lean on your team of expert advisors for the best advice. Whatever your plans, let’s connect to make sure you’re able to navigate the spring housing market with confidence.
In our Atlanta Market (Alpharetta, Cumming Suwanee & Milton) I expect home values to be stable to increase slightly and I expect inventory levels (think homes for sale to remain low). The low inventory levels will help protect home values.
Atlanta is expected to be one of our nations strongest markets this year. If you are considering selling your home, take advantage of the low inventory - call or text John Foster at 770 722-7010
You’ve likely seen headlines about the number of foreclosures climbing in today’s housing market. That may leave you with a few questions, especially if you’re thinking about buying a house. Understanding what they really mean is mission-critical if you want to know the truth about what’s happening today.
According to a recent report from ATTOM, a property data provider, foreclosure filings are up 6% compared to the previous quarter and 22% since one year ago. As media headlines call attention to this increase, reporting on just the number could actually generate worry and may even make you think twice about buying a home for fear that prices could crash. The reality is, while increasing, the data shows a foreclosure crisis is not where the market is headed.
Let’s look at the latest information with context so we can see how this compares to previous years.
In recent years, the number of foreclosures has been down to record lows. That’s because, in 2020 and 2021, the forbearance program and other relief options for homeowners helped millions of homeowners stay in their homes, allowing them to get back on their feet during a very challenging period. And with home values rising at the same time, many homeowners who may have found themselves facing foreclosure under other circumstances were able to leverage their equity and sell their houses rather than face foreclosure. Moving forward, equity will continue to be a factor that can help keep people from going into foreclosure.
As the government’s moratorium came to an end, there was an expected rise in foreclosures. But just because foreclosures are up doesn’t mean the housing market is in trouble. As Clare Trapasso, Executive News Editor at Realtor.com, says:
“There’s no reason to panic, at least not yet. Foreclosure filings began ticking up . . . after the federal foreclosure moratorium ended. The moratorium was enacted in the early days of COVID-19, when millions of Americans lost their jobs, to prevent a tsunami of homeowners losing their properties. So some of these proceedings would have taken place during the pandemic but got delayed due to the moratorium. This is a bit of a catch-up.”
Basically, there’s not a sudden flood of foreclosures coming. Instead, some of the increase is due to the delayed activity explained above while more is from economic conditions. As Rob Barber, CEO of ATTOM, explains:
“This unfortunate trend can be attributed to a variety of factors, such as rising unemployment rates, foreclosure filings making their way through the pipeline after two years of government intervention, and other ongoing economic challenges. However, with many homeowners still having significant home equity, that may help in keeping increased levels of foreclosure activity at bay.”
To further paint the picture of just how different the situation is now compared to the housing crash, take a look at the graph below. It shows foreclosure activity has been lower since the crash by looking at properties with a foreclosure filing going all the way back to 2005.
While foreclosures are climbing, it’s clear foreclosure activity now is nothing like it was during the housing crisis. In addition to all of the factors mentioned above, that’s also largely because buyers today are more qualified and less likely to default on their loans.
Today, foreclosures are far below the record-high number that was reported when the housing market crashed.
Right now, putting the data into context is more important than ever. While the housing market is experiencing an expected rise in foreclosures, it’s nowhere near the crisis levels seen when the housing bubble burst, and that won’t lead to a crash in home prices.
In the Atlanta market I am seeing some foreclosure activity - no where near as much as back in 2006-2012. Additionally, everyone seems to want a deal so lots of people ask about buying a foreclosure and some look at foreclosed homes. However, few end up buying one. If you have any questions about foreclosures in your area - just call or text me at 770 722-7010
Is now a good time to sell my home in Suwanee Ga? The Suwanee real estate market is constantly changing - some days on the news you hear our Real Estate Market is weak and the next week you hear the Suwanee Real Estate Market is a Seller's market.
What is a Sellers Market? John Foster, Realtor in Suwanee Ga, in this video explains what a Sellers Market is.
Show how much inventory is for sale in Suwanee Ga now? Is it a Buyers Market or a Sellers Market. This is very important to know if you are planning to Seller your home. This graph shows the inventory levels in Suwanee Ga going back 3 years.
At the end of March 2023, Suwanee had a 1.2 months supply of homes for sale. This is very much a strong sellers market so If you are considering selling your Suwanee Home now is a great time. Call John Foster today (770 722-7010)to find out how to use this strong sellers market to help you net the most money on the sale of your home with the least amount of stress.
John Foster strives to be the best Realtor in Suwanee GA, and he says Suwanee is in a strong Sellers Market right now. Find out why by watching this short video and look at his other videos.
Even though activity in the housing market has slowed from the frenzy we saw over a year ago, today’s low supply of homes for sale is still a sellers’ market. But what does that really mean? And why are conditions today so good if you want to list your house?
It starts with the number of homes available for sale. The latest Existing Home Sales Report from the National Association of Realtors (NAR) shows housing supply is still astonishingly low. Today, we have a 2.6-month supply of homes at the current sales pace. Historically, a 6-month supply is necessary for a ‘normal’ or ‘neutral’ market in which there are enough homes available for active buyers (see graph below):
So nationally the months supply of homes is around 2.6 months. If I want to sell my home in Cumming Ga, what is the inventory level and how will that impact my ability to sell? The chart below shows that today the month supply of homes in Cumming Ga is around a 1.2 months supply - very much a sellers market. Yes the levels are up from the last couple of years however well below the 6 month supply of homes which I consider to be a "normal healthy market". If you are considering selling your home in Cumming Ga - is could be the perfect time. Do you want to know about your community - just reach out to me (John) at 770 722-7010 and I am happy to help you understand the inventory levels in your community and if you are planning on selling your home, help you get it priced right.
When the supply of homes for sale is as low as it is right now, it’s much harder for buyers to find one to purchase. That creates increased competition among purchasers and keeps upward pressure on prices. And if buyers know they’re not the only one interested in a home, they’re going to do their best to submit a very attractive offer. As this happens, sellers are positioned to negotiate deals that meet their ideal terms. Lawrence Yun, Chief Economist at NAR, says:
“Inventory levels are still at historic lows. Consequently, multiple offers are returning on a good number of properties.”
Right now, there are still buyers who are ready, willing, and able to purchase a home. If you list your house right now in good condition and at the right price, it could get a lot of attention from competitive buyers.
Today’s sellers’ market holds great opportunities for homeowners ready to make a move. Listing your house now will maximize your exposure to serious, competitive buyers. Let’s connect to discuss how to jumpstart the selling process- call or text me today at 770 722-7010 or email me at John.Foster@kw.com - you will see that I will do everything I can to make sure you are happy with selling your home - I want you to say "John Foster is the best Realtor in Cumming Ga". That is how I run my business and I hope to be able to serve you.
Keller Williams Realty (South Forsyth office) is excited to announce that 9 of our Keller Williams Atlanta Partners - South Forsyth Agents made it into our Keller Williams Atlanta Partners Top 50 Individual Agents (out of 3,448 agents in our amazing group), & were able to attend the Private Mastermind! We are so proud to be in business with them & celebrate their continued success!!!
I am really grateful to everyone that allowed me to serve as their Realtor (last year and in the past) and those that referred friends to me. On behalf of my family and I thanks for making 2022 such a wonderful year for our business. Now on to 2023. I strive to be the best Realtor in Cumming GA and I want to say thanks again.
?#kw #kwri #kwsf #KWSouthForsyth #KWAP #bestlistingagentinCummingGa #grateful
If you plan on Selling your Atlanta home this year, and you want to net as much money as possible from the sale of your home. Watch this video to find out how to make the most money.
To Sell your home using John's 72Sold method - contact John today.
Cell 770 722-7010
John.Foster@kw.com
