During the peak of the pandemic, Atlanta's housing market was red hot, with bidding wars pushing prices higher and homes vanishing from listings in days. Today, that frenzy has cooled. Rising mortgage rates and an influx of new inventory are giving buyers more leverage—not just in Atlanta, but across much of the country.
According to a recent Zillow report, the U.S. housing market is more balanced than it has been in five years. In 28 of the nation's 50 largest metro areas, conditions now favor buyers or are at least neutral. This shift is especially visible in once-booming southern cities such as Austin, Texas, and Tampa, Florida.
One major driver is inventory. In June, there were 1.36 million homes listed for sale—the highest number since November 2019. Still, supply remains about 21 percent below pre-pandemic averages. Despite more listings, affordability remains the largest hurdle. The average 30-year mortgage rate sits at 6.74 percent, while the median price of existing homes hit a record $435,300 in June.
Builders, who ramped up construction during the pandemic housing rush, are now turning to discounts and incentives to lure buyers. D.R. Horton, the nation's largest homebuilder, noted in its latest earnings report that perks like mortgage buydowns and free upgrades are becoming more common, and it expects to offer even more in the months ahead.The increased flexibility is showing up in listing prices: more than one in four homes had a price reduction in June, the highest share for that month since Zillow began tracking the data in 2018.
Agents in the Atlanta metro area say buyers are cautious and deliberate. "I'm definitely seeing a lot of buyers coming out of the woodwork again wanting to see homes," said Tim Hur of Point Honors and Associates, Realtors. "They kind of have an expectation of what they want." That's exactly what Mia Jung and Haley Byun have found. The couple, who began their search a year ago in an Atlanta suburb, say higher interest rates have forced them to lower their budget, but the upside is less competition and more negotiating room. Half of the homes they've toured have had price drops, and they're willing to wait for the right deal.
"It surprised me a little knowing that we have this flexibility and seeing the house prices just continuously go down," Jung said. "So we have the comfort of knowing we can hold out somewhat."
Economists say both buyers and sellers are adjusting to a new normal, where the ultra-low 3 percent mortgage rates of 2020 and 2021 are unlikely to return. While the Federal Reserve has held rates steady in recent months and signaled possible cuts later this year, mortgage rates are still expected to hover around 6 percent into 2026, according to Fannie Mae.
"A price correction is necessary in order to keep housing sales moving in a positive direction," said Orphe Divounguy, a senior economist at Zillow.
Recent data supports that shift: The S&P CoreLogic Case-Shiller Index showed the smallest annual price gain in nearly two years in May, while Redfin reported that prices fell in more than a quarter of the 50 largest metro areas this past week, particularly in Texas and Florida.
For homeowners looking to sell, expectations are shifting. Listing a home as-is is no longer enough. Renovations, upgrades, and polished presentation have become critical. As Hur explained, "Unfortunately, the days of slapping it on the MLS are just gone."
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