Despite higher mortgage interest rates, the real estate market has stayed strong in Buckhead, Brookhaven, Dunwoody, and Sandy Springs – but it is far less frantic. The scenario is likely to continue, according to neighborhood real estate professionals.
They predict that sellers will still do well with a home listed at a sound price. And they suggest homebuyers grab the opportunities that higher rates offer – more stable housing prices and fewer buyers in the market.
DeAnn Golden and Lori Lane
“The Atlanta real estate market and the sought-after neighborhoods of Buckhead, Brookhaven, Dunwoody and Sandy Springs have demonstrated resilience in the face of higher interest rates,” said DeAnn Golden, President and CEO, Berkshire Hathaway HomeServices Georgia Properties. “These areas are anticipated to align with the national trend of escalating home prices.”
Golden noted that a pivotal factor is the shortage of available homes. “Lawrence Yun, the Chief Economist of the National Association of Realtors (NAR), foresees a 2.6% increase in home prices for the year 2024,” she added.
She stated that the National Association of Realtors (NAR) anticipates a potential drop in mortgage rates to between 7% and 6% in 2024. “This projection suggests a favorable environment that could further stimulate demand and help sustain the existing price levels,” Golden said.
Lori Lane, President New Homes Division and Senior VP of Luxury and Global, Berkshire Hathaway HomeServices Georgia Properties, echoed Golden’s positive message: “Looking ahead to 2024, our firm envisions a landscape of stability in the regions of Buckhead, Brookhaven, Dunwoody and Sandy Springs.”
She said that Yun’s forecast not only sheds light on the imminent increase in home prices but also underscores the persistent challenge of housing supply. “Despite the prevailing higher mortgage rates, the unwavering demand for homes will uphold elevated price levels,” Lane predicted.
Kelly Boudreau
Kelly Boudreau, Real Estate Agent, Home Luxury Real Estate, shared an important insight: “The reality is that there are some excellent opportunities now for first-time and move-up buyers, so they shouldn’t necessarily wait for changes in interest rates.”
She said that the market is price-driven and disproportionately impacts first-time home buyers, and, in turn, affects move-up buyers.
“With inventories particularly low, these buyers are waiting for interest rates to fall to maximize their budgets,” Boudreau explained. “When rates do eventually fall, the market will tighten further and become even more competitive. That, in turn, will drive home prices back up.”
New construction is driving the luxury market with move-in-ready properties, she noted. Additionally, resale homes not updated or renovated are spending more days on the market or seeing early price reductions.
“The effects of low inventories across Atlanta have resulted in buyers looking at a broader range of geographical options than has traditionally been the case,” Boudreau said. “Someone who might want to live in Buckhead is now considering buying a home in other communities, such as Brookhaven or Sandy Springs, rather than waiting for the market to open up in their first choice location.”
Ashley Battleson
According to Ashley Battleson, Real Estate Professional, Atlanta Fine Homes | Sotheby’s International Realty, Atlanta’s luxury housing market has been witnessing annual price appreciation, although the pace of activity is currently on the decline.
“This slowdown can be attributed, in part, to the prevailing high-interest rates and a discernible shift in buyer behavior compared to just a few years ago. Today’s buyers are notably more discerning,” she said.
Battleson stressed that while home prices have risen, the associated costs of homeownership and maintenance have also seen an uptick. “Those who have undergone renovations in the past three years can attest to the increased expenses, budget overruns or unforeseen delays,” she said.
She advised sellers to price their property correctly. “Even if a property is spectacular, setting the price too high may discourage well-researched buyers who hesitate to overpay or offend with a low offer,” she said.
Anticipating a robust and stable real estate market in 2024, Battleson said, “I foresee an easing of inventory constraints as a greater number of sellers, who have been holding off not wanting to give up their ultra-low mortgage rates, begin to feel more comfortable with easing interest rates and express their intention to either upgrade or downsize,” she said.
Shanna Bradley
“When the interest rates first went up this summer, the market slowed,” reported Shanna Bradley, Realtor, Ansley Real Estate | Christie’s International Real Estate. “Towards the end of the third quarter, the market started moving again, and there is an uptick now in pending sales and number of homes on the market.”
She also noted that there have been more cash purchases than in the past few years.
The market is not as competitive on the buyer side, “which has been a nice change, although in certain price points – below $2 million – there are still multiple offers if a home is priced well,” Bradley shared.
She said that real estate isn’t moving quite as fast as it was, “but that was not sustainable. We are in a normal ‘pre-COVID’ market. The average sales price in Atlanta has gone up 2.8% year over year (2023 vs 2022). The number of pending sales year over year is down 20%.”
Bradley foresees stability in 2024 and many opportunities for homebuyers.
“Honestly, it’s a fantastic time to buy because it’s not quite as competitive, so buyers are not having to pay more than market value, which they had to do the past few years,” she said. “Interest rates have decreased from the summer, plus a buyer can refinance.”
Diane Smith
“The Great Reset in our market for 2023 has slowed down from the previous two years to a more normal market, but with few homes on the market,” said Diane Smith, Senior VP and Managing Broker, Harry Norman Realtors | Atlanta Perimeter.
“Days that homes are on the market are increasing. With 2022, we had 20 days as an average to now 30 to 40 days,” Smith reported. “This is still significantly down from prior to the 2020 market, when we had 75 to 90 days on market.”
She pointed to the continued demand for homes in desirable areas such as Buckhead, Brookhaven, Dunwoody, and Sandy Springs. “The inventory is low. Homes coming on the market buyer-ready and priced for the market are seeing multiple offers,” she said.
Smith believes 2024 will be stable, and a lot like 2023. “We do need more homes on the market to have homes that the buyers are desiring. If they can’t find it here, then they will look to the areas north of Atlanta,” she said.
She also suggested that homebuyers buy now, even with higher rates.
“If rates go down, then refinance. Homes are only going to continue to rise 3 to 5 % over the year. Buy the home now at the price you want,” Smith advised.
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