2013 Metro Atlanta Housing Market

SHIFT IN THE ATLANTA MARKET

The last quarter of 2012 saw inventory across the board drop and prices begin to increase.  In 2013 that trend will continue.The first segment that will continue to see decline are the foreclosure/REO properties.  Lenders are looking to push bulk sales to investors and increase the number of short sales on their current borrowers.  Some lenders prefer to do a short sale over a loan modification.  In 2012 we saw lenders who actually solicited mortgagees to do a short sale and receive up to $30,000 in relocation assistance. With less foreclosures and more resales, prices across the board will begin to increase.  This will allow stale listings to finally be absorbed making way for new inventory.

HOW THIS AFFECTS YOU AS A HOMEOWNER

If you have a property that you would like to do a short sale on, you may see more favorable terms given by lenders to expedite the process.  If you have a home that is right on the borderline of being underwater, you may see property values in your area increase to whereas you can do a refinance or a traditional sale and either break even or (dare I say) make a profit!  If you are not planning on buying or selling and currently own a home, this is the market you've been waiting for!  Inventory gets low and prices increase. Less foreclosure comps on appraisals allow property values to rise.  In the Metro Atlanta area, I believe you'll see a noticeable increase in the next two years.  Until unemployment rates decrease, we will not see a dramatic change across the board since you will still have mortgagees that are in danger of foreclosure.

HOW THIS AFFECTS YOU AS A RENTER OR LANDLORD

As a potential renter, you will find a lot more rehabbed properties available with slightly less restrictive application processes.  As a landlord, you will see fair market rent go down slightly due to the influx of investment properties that have been rehabbed and put on the market for rent.  You will definitely need to do some cosmetic repairs to get fair market rent and some upgrades if you're looking to get top dollar.