At a time when property prices are at their highest in nearly 30 years, most of the attention in the Atlanta real property community is on the rising value of the city’s real estate market.
But in reality, Atlanta realtors are in a precarious position, as the number of listings on the citywide market has remained fairly stagnant for years, according to the Atlanta Real Estate Association (ARA).
This has led to the real estate industry in the city facing an unprecedented level of pressure from competitors and a potential loss of business.
In fact, the industry is struggling to make ends meet even though it’s the fastest-growing industry in America.
“We’ve seen a real estate price bubble, and people are being priced out of the market,” says John DeBord, a realtor in the area who has been in the industry for more than 25 years.
DeBort says he has seen a huge influx of new buyers into the city, especially in the downtown area, with the Atlanta BeltLine and MARTA moving hundreds of thousands of passengers each day.
In addition, Atlanta has seen an influx of young professionals and people with disposable income seeking to live in the community.
“It’s a great time for a realtor to come here because they’re able to offer a much more affordable price,” DeBorg says.
He says that his average listing price in Atlanta has increased nearly 50 percent in the last year alone, and he says his real estate agent is getting more requests for homes than ever before.
“Our clients are looking for properties that are a bit lower on the market, a little bit more affordable,” De Borg says, adding that he expects this to continue.
The real estate bubble has also impacted other cities in the region, as well.
According to the Real Estate Board of Atlanta, realtives in Atlanta have seen an average of 539 sales per day in the past six months, up from an average daily of 3,082 in the same time period in 2016.
The average number of sales per sale for all of 2017 was 3,083.
In other words, it appears that more people are choosing to move to Atlanta for a lower price than the previous year, according the realtive.
“I think we’re seeing a real change,” De Barres says.
Atlanta realtor John De Bort says the price of a home has increased dramatically in the neighborhood over the past few years.
“If you look at the top 20 or 25 neighborhoods, the median price for a home is a little higher than it was a year ago,” De Borons statement said.
The number of homes being listed on the Atlanta Area Real Estate Market has been steadily increasing for more years than anyone can recall.
In 2018, the average listing cost was $8.7 million, up about $4 million from 2017.
In 2020, the price was $11.6 million, a $2 million increase from the previous two years.
The median price of homes in the entire metro area has increased from $832,000 in 2020 to $1.4 million in 2021, according To RealtyTrac.
But DeBors home price is only half of what it used to be.
“Now I’m getting a better deal, but the mortgage and the down payment have gone up.
The home is only worth $5 million,” De Boer says.
De Bors home is on a street with a median price just under $1 million, but he doesn’t have a problem paying $600,000 a year in mortgage payments.
De Boers home has an annualized value of $2.4 billion, and his mortgage payment is currently just under 10 percent of that.
That’s not great, but De Boes mortgage payment doesn’t include taxes, insurance, or a down payment.
And that’s not even considering the cost of a mortgage and other closing costs.
“The price of home has gone up a lot,” DeBoers says.
“When you add it all up, you’re looking at a little over $200,000 per year in taxes and insurance.”
However, De Boerys income is still well below the national average.
He has a mortgage of $1,800 a month, and according to Realty Trac, he has a net worth of less than $400,000.
So while his home is expensive, he says he’s still a good-paying job in the realtor industry, and that’s exactly why he’s moving.
“My main concern is my career,” De Besse says.
At the same moment, the city is facing the possibility of a new recession.
The Atlanta economy has been slowly losing ground in recent years, and many economists expect that the recession could continue for several years, especially if the housing market continues to suffer.
“That could cause the housing price