MAY 2023

Tom Florence, Broker

RRT Real Estate, Inc. | Red Rabbit Team

redrabbitteam.com

tom@redrabbitteam.com

404-402-8062

To rent or to buy?

I recently had clients who were relocating to the Atlanta area and were debating whether to buy or rent. After looking at the low inventory of homes for sale, they made the disheartened decision to rent for a year. My disappointment that they lost patience so quickly was compounded when I saw this graph of the current rental market:

The data above and the accompanying narrative was mind-blowing to me. It shows that since 1999, not only has rent growth grown faster than income growth: 134.9% to 76.8% respectively, but the median renter will spend 29.6% of their monthly income on rent. That's an uncomfortably high ratio according to Moody's Analytics.

My advice to those weighing the two options: Be patient. Get your ducks in a row by gathering all the data needed by your selected lender to be ready when the right home comes along.

Buying a home now can be challenging: mortgage rates are higher and inventory is low, while home prices have made a slight decline over the past five months. But compared with soaring rental rates, buying enables you to use the monthly payment toward equity and wealth where renting does not. Buying offers tax deductions; renting does not. Ownership builds equity where renting is no different than flushing each month's payment away.

The market is ever-changing and relatively short periods of time can create a sea-change in its navigation. A couple of items to note from the graph above:

*32% of the current active listings are properties have been on the market for 45-, 60-days or more. In this tight, low-inventory market, that's a long time. Many Sellers are holding on to the idea that they can get the above-market prices that we saw 18 months ago. Overpricing based on stats of a previous market is a mistake.

**Inventory supply levels are higher than a year ago, but this number remains historically low. A six-month supply of inventory indicates a balanced market. More than six months is considered a Buyers market; inventory below six months a Sellers market. The metro Atlanta area remains very much a Sellers market.

The Dunwoody Preservation Trust has been a big part of our family's life since moving to Dunwoody almost 28 years ago. Last week, Kathy and I enjoyed a donor's ceremony for an unveiling of the new Dunwoody Diorama. Taken from a 100-year-old tree that died on the Donaldson-Bannister Farm property, this hand-carvd relief diorama is a 19' long depiction of the history of Dunwoody from 8000 B.C. to the present. It's truly a superb, one-of-a-kind sculpture presented to the Dunwoody community. Special thanks to Melanie and Jim Williams who had the great vision to create this beautiful piece of art. You can find the Dunwoody Diorama mounted outside of the barn at the Donaldson-Bannister Farm on Chamblee Dunwoody and Vermack Roads. When you get the chance, please drop by and see it for yourself!

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