Tom Florence, Broker

RRT Real Estate, Inc. | Red Rabbit Team

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tom@redrabbitteam.com

404-402-8062

Real Estate March 2023…Where are we?

With changes happening, it seems on a daily basis, the one real estate question I get is, “How is the current market? Is it really as bad as they say?” Look, I understand the question, recently I heard existing home sales in January plunged 37% betweem 2022 and 2023. Yes, that’s true. But context is everything, as they say so here’s a little to think about:

“Remember that the spring market in 2022 was incredibly unusual," said Jessica Lautz, National Association of Realtors. "Then, homes for sale had the highest number of offers since 2015, at 5.5. Today, it averages 2.5 offers. Buyers were savvy and knew mortgage interest rates were going to increase and jumped into the market to lock in a home immediately.”

Keep this in mind when you hear folks compare today’s market to the 2022 market.

So back to the question, “Where are we?” Here are four key points to consider:

1- Still low inventory

The rule of thumb is if housing inventory levels are below a six month demand level, its a seller’s market. Above, it turns to a buyer’s market. In metro Atlanta today, there is only a 2.1 month supply of homes on the market. In Dunwoody, GA, the inventory is less than one month supply. It's still a strong sellers' market.

2- Value in home ownership

Real estate continues to be one of the best investments you can make long term. If you look at the graph at left, you can see how values have increased in every state -- close to 284% in Georgia since 1991.

3- Affect of today's high inflation

Food for thought: If you go to the store today, a $100.00 bill doesn’t go as far as it used too. That same $100.00 go to pay on your fixed monthly mortgage payment? The same as it did when you bought your home.

4- Increase in Mortgage Rates

Everyone knows that mortgage interest rates have gone up the past year. But even with the seven most recent rate hikes, the question is, "are rates at a historic high?" The answer is no. Current rates are hovering in the 6.65 to 7.25 range. Looking at the below graph, that same range was the market benchmark in the 1970s and 1980s. In the 1990s and 2000s, rates were consistently in the sixes. So have rates gone up from the past 3-4 years? Yes, but not to historic highs. They are in the average range for the past 30-plus years.

Looking to buy a new home or sell your existing home?

Would you like to know the current market value of your home?

Contact Tom Florence, 404-402-8062, RRT Real Estate

RRT Real Estate is growing. Call or email for information about joining our team. tom@redrabbitteam.com