The 2015 is promising to be a very interesting year in real estate. 2014 was the best year in the U.S. economic recovery since the recession in 2008 and the housing market has, by and large, rebounded. In fact, the 3% down payment offer from lenders is making a return and some are allowing down payments to be made by other parties, a practice that was unheard of just a year or two ago. A few lenders have even decided waiving mortgage-related fees. For buyers with good credit scores and steady income, getting into a home is probably the easiest it has been since the recession.
Hot Real Estate Markets
Though most of the housing sector around the country is recovering well, a few places are seeing outstanding growth. Listed among the top 10 housing markets of 2015 is Atlanta, Georgia. Atlanta, in fact, is a favorite for household growth and home sales growth, which together have pushed the metro area into the number one spot for real estate growth in 2015. This comes as both a relief and surprise given that Atlanta was one of the cities hit hardest by the housing bubble collapse.
The prediction is that, over the next five years, home ownership in Atlanta will grow by 7%. This is being spurred in part by strong employment growth and in part because the city is still an affordable place to buy. Home sales are expected in increase by at least 11% in Atlanta in 2015. In fact, the city may show the greatest growth in home sales for any city in the United States in 2015.
High Inventory
Atlanta has been slow to recover from the recession that started in 2008, but that may benefit the city in 2015. The glut of houses on the market should keep prices low and encourage buyers. While home prices nationwide are expected to increase by about 5% over the coming year, prices in Atlanta should remain relatively stable. This makes the Atlanta market a great place for first-time home buyers.
Job Growth
Georgia expects to add about 10,000 to 20,000 jobs per quarter throughout 2015. Job growth will both drive and be driven by the boom in home sales. As more families move to Atlanta for work, the demand for houses should increase. This, in turn, will stimulate the construction industry (both residential and commercial), which will in turn create more jobs. Permits to build multifamily housing increased in Atlanta throughout 2014. Permitting activity is expected to rise in both 2015 and 2016, indicating that recovery is legitimate.
What the Locals Say
National and state reports are great, but to really get a feel for the market in a city, it is important to ask local real estate agents what they anticipate. Most of them are looking forward to low interest rates in the beginning of 2015. Combined with an abundance of affordable housing, most agents expect that the low interest rates will spur a significant buying frenzy in Atlanta and its suburbs. In particular, they expect the early part of the year to be a “buyer’s market,” with low interest rates, loads of houses on the market, and lenders who are itching to make deals. Simply put, Atlanta real estate agents expect to be very busy in 2015.
