The Atlanta real estate industry is finally beginning to see signs of recovery. In fact, the National Association of Realtors announced that the real estate market overall made a “robust” recovery in 2013. This may be the best time to own residential Rental Property.
Our local multiple listing service, FMLS, indicated that properties sold in the Emory area and the City of Decatur increased by 60% from 2012 to 2013; that properties were selling closer to list price; and were on the market about 30 days less than in 2012.
The sale of Foreclosures and Short Sales has affected a large portion of the metropolitan Atlanta area during the past 4-5 years, but that inventory is dissipating, and the influence of major investors picking up distressed housing has almost disappeared. There are, however, still some decent properties available for local investors who are looking for rental income.
1) Interest rates are likely to rise –More will be renting.
2) Home prices will also rise – More will be renting.
3) Many homeowners who lost homes through foreclosure and short sales will not be able to purchase another home for some time. – More will be renting
4) Zillow reports in an article dated December 30, 2013 by Jennifer Chan “that home ownership will fall below 65% in 2014, the lowest since the mid-1990’s. The easy lending standards we saw during the housing bubble led to higher-than-normal homeownership, and in the recovery we’re seeing ownership rates normalize.” More will be renting
5) Chan also highlights another issue impacting the decline in ownership by Gen-Y-ers who are renters. “This group is the next generation of homeowners, but they’re seeing high unemployment and low wages”. More will be renting
6) Chan also indicates that “rising home prices will encourage Americans to move, but to less expensive areas where housing is more affordable. Metros like Houston, Dallas, Denver, Atlanta and Portland will see a growth in residents”. More will be renting
Atlanta Decatur Homes is a local real estate company selling homes located in Atlanta, Decatur, and Emory University neighborhoods for over 25 years and offering professional property management for homes in the Emory area.