What to expect from the Atlanta real estate market in 2024
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Atlanta's real estate market was too expensive to rent or buy for many last year, and experts tell Axios 2024 won't be that different.
Yes, but: They do expect a few changes that could make house and apartment hunting easier.
For buyers:
Driving the news: John Ryan, chief marketing officer for Georgia MLS, tells Axios that at the tail end of 2023, MLS saw an increase in active sale listings.
- "What that means is that there's going to be…a little bit more availability of houses as we move into 2024," he says.
Reality check: Availability and affordability will remain the two big issues facing the market this year, he says.
Zoom in: Orphe Divounguy, Zillow's senior economist, says the company's latest home value forecast shows metro area prices will increase 1.1% this year.
- Mortgage rates are also expected to stay "higher for longer," he tells Axios.
The big picture: If the economy is steady, 2024 mortgage rates could land around 6%. If the economy stumbles, rates could fall more significantly, Greg McBride, Bankrate's chief financial analyst told Axios' Brianna Crane.
- But lower rates may not remove all hurdles and could mean higher prices if inventory stays low as demand increases.
What we're watching: Atlanta homeowners tired of waiting for interest rates to drop back to 2021 levels may decide to sell, Divounguy says.
- "More homes on the market would be good news for buyers, spreading demand and slowing price growth."
For renters:
What's happening: Alexandra Both, senior research analyst and real estate writer at RentCafe.com, says Atlanta apartment hunting will be easier in 2024 due to last year's "robust" construction and the high number of units either planned or being built.
- Some of this leveling off started last year, when apartments were vacant for longer, the occupancy rate for rentals dropped and fewer people renewed their leases.
Be smart: With this new supply, Atlanta renters will have an opportunity to shop around for better deals, Both tells Axios.
Between the lines: She also expects competition in the suburban market due to hybrid work schedules and "smaller fluctuations in home prices and interest rates."
- Those factors "will determine (if) more younger families continue living in a rental for longer and wait for the right time to switch to homeownership," she tells Axios.