Woodstock, like other parts of metro Atlanta, has experienced unprecedented real estate growth and price increases during the last year. As the market settles, there are three things to remember about today’s housing market. First, inventory is low and buyer demand is still high. According to Freddie Mac, the nation is about 3 million homes short of meeting current demand, and the 1.2 million single-family housing starts predicted for next year simply aren’t enough for what the National Association of Realtors labels a “supply crisis.” So, what does this mean? Well, if you’ve been looking for the right window to sell to get top value for your property, this is it. Buyers want to buy as soon as possible.
I often am asked if the housing market is crashing. This leads me to the second thing you need to know — the housing market is not crashing, but it is in a correction phase. The subprime lending that greatly contributed to the 2008 market crash is not the reason for our current market correction, which is slowing the rate of home price appreciation. According to AEI Housing, if current rates hold steady at or around 6%, expect home price appreciation to slow to 4% to 6%. Before this correction, prices were simply appreciating at unsustainable speeds and, now, what we’re experiencing is a more balanced market. It’s like the housing market is an endurance athlete, and it just ran a long-distance race. Having accomplished that epic milestone, it’s sitting and taking a breather, allowing us all to recuperate from the chaos of 2020 and 2021.
Finally, inflation is no reason to put your real estate goals on pause. Think about it this way: You find the home of your dreams, and the mortgage rate is just below 6%, higher than it was several months ago but still historically low. If you make the decision to buy, the home is yours, and the rate is locked in as a hedge against future inflation. (This concept only applies to homebuying; rents are subject to inflation and will continue to rise as inflation does.)
Real estate still is one of the best long-term investments you can make. Don’t let this market pass you by without talking to a real estate expert who lives and breathes the Woodstock market.
– John Morris is the managing broker of Berkshire Hathaway HomeServices Georgia Properties’ Woodstock office. Questions about buying or selling? Email john.morris@bhhsgeoriga.com, or call 770-517-2150.
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