Everyone says real estate is local. That's true, but there are many additional factors influencing the market and how it will behave financially. I don't want to bog you down in crazy details, but I feel it's important to provide an overview of some significant changes happening in Atlanta.
If you are not aware, we are in one of the most constrained markets from an inventory perspective in at least a decade. This is part of why prices have moved up as quickly as they have. Price increases are likely to continue at the current pace until:
- Inventory increases
- Interest rates increase
- At certain price points, the stock market has more significant struggles
Each of these factors will have an affect on pricing, but the impact varies based on degree of movement, price point, and type of home.
Today I want to point out specifically the number of condo and apartment projects slated to hit the market. You can confirm the data yourself at Midtown Alliance.
Current active condo inventory: 129 (based on data from FMLS)
New inventory based on proposed projects: 8,186 (approximate)
This new inventory will be a mixture of condos and apartments, but I've lumped them together because it's very simple to turn an apartment project into a condo project. The availability of each also affects the other's value.
If we had ZERO existing condos go on the market over the next 36 months, there would be almost twice the inventory monthly in new product split between new condos and new apartments. It's easy to understand that adding over 8,000 units to the market - even over about 3 years will have a huge impact on value and time to sell.
What does this mean for you?
If you (or a friend) own a condo, reach out to us to discuss how this might affect your value. It will help some condo values move up, and it will cause others to stagnate or possibly move down. Not all condos are created equal. Consider:
- How old is your condo?
- Is the buyer for a brand new condo likely to want yours as well?
- What price per square foot is your condo valued at today?
- What is the price per square foot of the buildings being developed around you?
- What amenities and style is your condo and building vs. those being developed?
- Is your location better or worse than those going up?
- How large is your condo? Many going up are smaller.
Should I still buy?
There are reasons to buy condos in midtown right now - but it is important to understand the positioning of the purchase relative to the changing landscape. Your time horizon, the type of condo, and your exit strategies are necessary to make an informed analysis. Please reach out to us to discuss your specific situation.
Is now the time to sell?
For many, selling in the period prior to the release of new inventory may be the smartest strategy. This is, however, contextual as well. Please reach out to us to discuss your situation specifically. We can look at what you own, where you are headed next, and how the factors align.
How do I know?
Every persons situation is unique. If you've worked with us before, you know that's part of what we review when considering a home purchase or sale. Please reach out to me or your point person on my team to discuss how these factors affect your situation specifically. We can't predict the market, but we are in it every day working with hundreds of buyers and sellers. It's worth taking a few moments for an expert opinion on what is likely one of your most significant financial investments.