Not often that experts agree but the activity seen in 2020, 2021 & the early 2022 Metro Atlanta Market point towards another atypical year with many variables for Sellers and Buyers to consider.
Interest rates are expected to rise in Q1 to slow inflation and economic indicators are signaling mortgage rate increases. But realtors are advising buyers that, in addition to higher prices, which are expected to continue rising throughout 2022, even a small increase in rates will have an impact on purchase power. Waiting it out may not pay off in the long run.
The message for sellers is that if 2021 wasn't the year to sell, 2022 is. Sellers still have big gains to rake in over the next few months. However, sustained inflation and the potential for rising interest rates could well undermine buyer demand and slow that growth. While they still don't predict a housing bubble, a gradual rebalancing could make bidding wars and offers over list price less of the norm that sellers have come to expect towards the end of the year. The Residential Sales Price increased 20% YTD 2021 vs 2020. New listings are down 5.2% YTD in Metro Atlanta, while the number of sales increased by nearly 20%. This is an indicator of strong demand.