With higher mortgage interest rates, you might think Intown realtors would be disappointed in the calmer housing market coming into 2024. You may even think they’d suggest buyers wait for rates to drop.
You’d be very wrong.
Yes, the market is less frantic but experienced real estate professionals see that as a good thing. And they’re advising buyers to grab the opportunity that higher rates offer – more stable housing prices and fewer buyers in the market.
We spoke with five Intown real estate experts to get their thoughts on the 2024 market.
Valerie Levin
“I started my career in 1985 when rates were 14%. So, to me, the rates are still good and should never be a deterrent in the best investment you will ever make for yourself and your family,” said Valerie Levin, Senior Vice President, Managing Broker, Berkshire Hathaway HomeServices Georgia Properties, Multi-Office Leader, Midtown & Dunwoody/Sandy Springs Offices.
“The market is going through a correction which, in my opinion, needed to happen,” she said. “It was not unusual for our agents to write 10 to 20 offers for one buyer until a contract was successfully accepted. The buyer fatigue was gut-wrenching, and my agents were exhausted.”
While the overall residential real estate market is down 20%, an Intown property that shows well and is priced correctly will sell – and may generate multiple offers, Levin added.
This is because Atlanta’s job growth and desirability have remained since COVID spurred an exodus from several big cities – like New York and Los Angeles – to Atlanta. “There was a migration of very talented, innovative, career-driven people seeking an easier lifestyle and opportunity. This has not stopped,” she said.
And more good news: Levin reported that the National Association of Realtors expects mortgage interest rates to decrease to an average of 6% in 2024.
Rodney Hinote
Atlanta is a strong market with a heavy stream of people relocating to the area, so it’s a very safe place to invest, according to Rodney Hinote, Associate Broker, Ansley Real Estate/Christie’s International Real Estate.
He said the current market is still good, but much more manageable. “The pool of buyers has decreased given the increase of interest rates, but the listing inventory has decreased even more given that the “move-up” buyer looking to upgrade has all but gone away,” Hinote added.
He explained that move-up buyers – homeowners who’ve outgrown their houses – are not willing to give up their 4% interest rates for 7.5% rate. But they’re likely to accept the expected 2024 rate of around 5% to 6%.
Right now, there’s a huge pent-up demand in the move-up market segment; once rates fall, Hinote expects the floodgates to open.
“I keep telling people who are waiting for rates to come down that once rates are lower, the demand and prices are going to be much higher, so now is actually a great time to get into the market,” he said.
“My favorite saying is ‘Date the Rate and Marry the House.’ You can always refinance once rates lower,” Hinote added.
Avery McMahon
“Over the past year, the Intown market has maintained its appeal as a highly desirable place to live and displayed resilience in the face of higher interest rates,” said Avery McMahon, Senior VP and Managing Broker, HARRY NORMAN, REALTORS – The Intown Office.
She added that the rise in rates did impact the purchasing decisions of a significant number of potential buyers which led to a decrease in sales units and volume.
“One noteworthy trend in response to higher interest rates has been the decision of some sellers to postpone their plans to sell,” McMahon said. “This decision, in turn, contributed to a shift in market dynamics.”
Amid the changes, she has seen an increase in all-cash purchases. “Looking forward to 2024, there is anticipation that the trend of cash purchases may continue,” she added.
Still, there are indications that the market will regain momentum. “Rumors of interest rates dropping in 2024 have surfaced, and it is anticipated that both buyers and sellers who may have been on the sidelines for the past 12 to 24 months are now prepared to make decisions,” McMahon said.
Joy Myrick
According to Joy Myrick, Real Estate Professional, Atlanta Fine Homes/Sotheby’s International Realty, the Intown market has remained healthy, despite the higher interest rates.
“Lack of inventory continues to be an issue, although we are seeing some improvement,” she said. “We currently have 2.1 months of inventory on the market Intown.”
But she shared some good news. Myrick reported that mortgage rates have been declining for five consecutive weeks.
“Although significant drops are unlikely in the near future, rates are definitely stabilizing and buyers are responding with an uptick in mortgage applications,” she said. “We will likely continue to see a downward trend in rates in 2024.”
Still, the Intown market is moving just as quickly as last year. “In fact, in Morningside/Virginia Highland, the ‘days on market’ are remarkably similar to this time last year,” she said.
Looking ahead, Myrick expects to see more inventory over the next year, and more buyer activity as interest rates continue to stabilize.
“Nationally, home prices are projected to grow every year through 2027,” she said. “We anticipate the same for the Intown market – that price growth will continue, just at a slower pace that is more normal – and that’s a great thing!”
Ken Covers
“The rise in interest rates took the wind out of the sails for sure,” said Ken Covers, Private Office Advisor, Engel & Völkers Atlanta.
Even so, he reported that prices are not dropping. “We’re still seeing strong sales,” he said. “We sell the American Dream in Intown. A lot of people can still afford to buy a home with a yard, a garden, a pool, and a cool Intown vibe.”
Covers stressed that the best investment anyone can make, by far, is purchasing real estate.
“My advice to buyers is ‘Don’t wait!’ While there may be more inventory or lower interest rates down the road, there will also be a lot more buyers then. Now is the best time to buy. Keep in mind that prices will get higher when the interest rate gets lower,” he shared.
He also had a message for sellers. “I always advise sellers, if they’re going to do any work or renovations on their home not to ‘water it down’ but to ‘water it up.’ The nicer they make their homes, the better they sell Intown. Buyers respond to quality.”
As a final note, Covers added: “A good house can change your life and the best way to get one is to hire a good agent.”