770-889-8859
Search Menu

Metro Atlanta HomesMetro Atlanta Homes

Georgia's Home Buying Agents

The Metro Atlanta, Georgia Area

  • Menu
  • Home
  • Search For Homes
    • Search By the Listing Number
    • Search by the Address
    • Map Search
    • Advanced Search
  • Communities
    • Alpharetta, GA
    • Atlanta, GA
    • Johns Creek, GA
    • Milton, GA
    • Roswell, GA
  • About Us
  • Real Estate Tips
  • Contact Us

Metro Atlanta Housing Market: Looking Back and Ahead

The Metro Atlanta housing market deserves an analysis of what's happened so far this year – and what we can expect in 2017. With the end of the year quickly approaching, let’s take a look at some of the important facts impacting the real estate market this year.

Refinancing is on the decline.

It took the better part of the entire year, but it appears most people that can refinance already have done so. With rates at or near historic lows, borrowers flocked to their mortgage lenders to pay off loans with interest rates as high as 5%-7% in favor of those averaging in the 3.00%-3.5% range. Refinancing, according to mortgage experts, were the the largest growth stimulators for most banks and lending institutions. Since rates just can’t get much lower, it’s doubtful that refinancing will continue to be as popular as it was in 2016.

Buyers are attracted to new homes.

Many in the Metro Atlanta housing market are choosing to purchase newly built single family homes instead of existing ones. With home inventory levels down in the Dayton Ohio housing market,

Despite the homeowner participation rate at a record low during much of 2016, many homebuyers chose to purchase newly built single family homes instead of existing ones. With home inventory levels down in the Metro Atlanta housing market, homeowners were slower to perform the necessary upgrades to their homes and put them up for sale. This created what economists describe as a “self-fulfilling prophecy” of continued lower inventory and a supply unable to keep pace with demand. The effect was especially detrimental to the starter home market, where first-time homebuyers usually begin their search.

Homebuyer confidence continues to remain robust.  

As we’ve seen in recent years, millennials are very careful with their money. As such, many of them have put off home buying until they are able to save for a down payment, or until they are confident with their career choices and the city in which they live and work. However, these fiscally conservative young adults increasingly do want to own their own homes. The proverbial “catch” is they want to do so on their own terms. Remember, this segment of the population is accustomed to renting and they have grown used to the short-term flexibility and expectations that go hand-in-hand with renting an apartment or home. Surveys show more than 85% of millennials plan to stay in the homes they purchase for less than seven years. So, mortgage terms and the ability to sell their homes in a few short years are important factors to them.

Low interest rates prevailed.

Probably the biggest advantage the Metro Atlanta housing market experienced in 2016 was the consistently low interest rates. Steadily improving consumer confidence combined with reportedly lower jobless rates have given the Federal Reserve little reason to raise interest rates, at least for the time being. Experts say the downside of lower interest rates is that new home sales – which have come to expect and almost take for granted low mortgage rates – will suffer slightly. As is normally the case with a rate increase, even a slight one, potential home purchasers typically are slower to make a move. On a more positive note, however, rising rates usually mean home sales prices will either level off or decrease somewhat.

Remember, all real estate is local… and that’s a good thing.

During 2016, it was reinforced over and over again that it’s difficult – and even dangerous – to lump the real estate market into one large basket. Each individual market is different because each region of the United States is different in terms of the economic influencers in a certain community or state. While some markets may be experiencing very good sales and higher sales prices, others may be lagging behind – negatively influenced by the closing of a large manufacturing facility or the damages cause by a flood, a hurricane or other natural disaster. In addition, the housing market in a state or region that employs a large number of millennials, for example, can be impacted negatively because the average length of time they stay on a job is 2.8 years.

With what we’ve experienced and learned in the Metro Atlanta housing market in 2016, what can we expect in 2017?

While many factors could come into play between now and the first of the year, it appears to many economists that home prices have probably peaked and will likely go down slightly – for these main reasons:

What goes up must come down. That's usually a “given” in the real estate market. In the long run, home values usually rise. However, if we look at the manner in which prices have risen during the past year or so, a number of the hotter markets will likely experience a correction, causing prices to stabilize or dip.

Interest rates will go up.  After all, interest rates can’t stay this low forever, right? So, expect an increase – even a slight one – sometime in 2017. And when rates rise, home prices will decrease.

Home inventory will increase. Analysts expect new construction to shift from multifamily units to single-family homes, making the Metro Atlanta housing market less competitive in the process.

Affordability will be a hot topic. It always is, but affordability will become even more important if inventory increases and interest rates go up.

How will the elections affect the Metro Atlanta housing market? The answer is yet to be determined and few discernible changes – if any – will likely not occur until late in the first quarter of 2017, if then. While both candidates have referenced the housing collapse of less than a decade ago, neither has provided a clear policy outlook for how to avoid a similar occurrence in the future. Look for continued government regulation and housing safeguards to protect the industry. However, as always, there will have to be a balance in order to keep home ownership affordable and popular without repeating the mortgage sins of 2008.

See more articles pertaining to the latest Metro Atlanta real estate news in the section of articles on Atlanta Real Estate News just below Atlanta Real Estate Categories in the column to your right. And remember, we also post tips daily on Facebook and Twitter. Check us out there as well.

Posted in: Atlanta Real Estate News Tagged: Metro Atlanta housing market

Metro Atlanta Housing Market Blossoms This Spring

In the Metro Atlanta housing market and others throughout the country, as spring approaches so does a feeling of optimism for many looking to buy. Historically, for a variety of reasons, the coming of spring signals the start of the housing market's activity. However, with home inventory at considerably lower levels than most real estate professionals would like to see them, a home search promises to be a challenging and lengthy task.

Inventory Low in Metro Atlanta Housing Market

With the supply of homes on the market scarce, real estate experts expect demand to continue to rise. Home prices remain on the upswing – not as a result of rising incomes, but simply because of the age-old economic principles of supply and demand. Homes in short supply meet demand at its peak, resulting in a proverbial seller's market enjoying higher sales prices.

While prices continue to rise, some economists say the pace is slowing a bit. Still, the growth in home prices should encourage additional activity in new home construction. Aggregate housing starts have remained above the annual rate of 1 million starts per year for the past eleven months. In addition – and more importantly – single family housing starts have exceeded 700,000 units per year since June 2015. So, in spite of the lagging inventory of homes on the market, housing investment continues to be a positive factor in the growth of the gross domestic product of the U.S.

Homes in or near urban centers are expected to fare the best. The demand to be close to the city or metropolitan areas creates a veritable buying frenzy. Tight inventory will lead to multiple offers as prospective buyers look to purchase – often before the homes officially reach the marketplace.

The prognosis for some buyers isn't quite as rosy, however. Zillow Chief Economist Svenja Gudell says, "There are a lot of economic forces at work behind the scenes that will have a big impact on housing as we enter the busy home-shopping season. Low inventory is a factor in almost every market, so buyers should be prepared for a limited selection in the months to come.”

Some home buyers won't find exactly what they're looking for. Those home shoppers will be faced with an uneasy dilemma. Will they be forced to settle for something that doesn't meet their expectations or needs? Many buyers are hesitant to make a purchase for fear they may get stuck with a house they can't easily resell. In addition, they dread "buyer's remorse" that may set in once they realize they made a bad decision by buying something they really didn't fall in love with.

As a result, renting is always an option. Some prospective first-time buyers have put off buying for a variety of reasons. Chief among them are a lack of a sufficient down payment, fear of taking on additional debt on top of student loans, an ever-changing job market and rising home prices. Plus, statistics have shown that younger buyers are less apt to buy "fixer uppers" at today's prices, primarily due to the cost involved to improve the property to meet their needs.

For those in the Metro Atlanta housing market looking to buy but possibly deciding to rent until they find their dream home, they're faced with another dilemma: rising rents. The question many will have to ask themselves is, "Does it make better financial sense to buy or rent?" Most real estate analysts say that depends on the old adage of "location, location, location." In some markets throughout the U.S., homeowners can reach the break-even point in less than two years. What that means is home buyers can spend as much to own as to rent, taking into consideration mortgage rates, down payments and taxes. In pricier markets the break-even period may take longer – often between 4-5 years.

Some home buyers remain bullish on buying instead of renting – even though they may not find exactly what they want. They view home ownership as an investment, preferring to buy and hold the house as it appreciates in value. This segment of the Metro Atlanta housing market is less likely to rent. They consider renting tantamount to throwing money away without building equity in an investment. And, with mortgage interest rates near record lows, buying probably makes better sense for many.

Other factors will impact the Metro Atlanta housing market this spring. Global economic volatility continues to contribute to an ever-strengthening U.S. dollar. This will ultimately have an effect on demand from foreign purchasers, resulting in keeping interest rates low.

In addition, some U.S. economists warn that continued single-family residential investment as a major component of gross domestic product is worth watching and tracking. Historically, the investment component has been a high-ranking monetary indicator that tends to peak just before the beginning of economic recessions. This has been cited as a reason that some financial analysts point to a "mild to moderate" recession by the third quarter of 2016.

 

See more articles pertaining to the Metro Atlanta housing market in the Atlanta Real Estate News section of our site below Atlanta Real Estate Categories in the column to your right. You can find information there on a variety of topics ranging from home buying and home selling tips to home improvements, home inspections, mortgage financing, homeowner's insurance and much more.

Remember, we also post tips daily on Twitter and Facebook. Check us out there too.

Posted in: Atlanta Real Estate Tagged: Metro Atlanta housing market

2016 Metro Atlanta Housing Predictions

The Metro Atlanta housing market can expect a continuation of many of the factors it experienced in 2015. Zillow recently released their 2016 predictions for the housing and real estate markets. Let's take a look at what we can expect.

Metro Atlanta Housing – Challenges Ahead

According to Zillow, many of the recent market trends will linger longer. Some will turn into challenges facing prospective home buyers.

Affordability will worsen.
While many Americans have known this for awhile now, home ownership simply might not be a reachable goal for some.

First time home buyers will be older.
In 1975, the median age of a first time home buyer was 29. Today, it's 33. This trend is expected to continue as millennials delay important life decisions such as getting married and starting families. In addition, many young people will continue to have a hard time moving from being renters to prospective home owners. The available inventory of starter homes remains low and many millennials have been unable or unwilling to save money for a down payment.

 

Home price growth will still outpace income.
While home values will grow at a slower rate than they did in 2015, they will still rise. Experts predict a return to increases of around 3.5%, which is the historical average. Home affordability is expected to get worse because income growth has remained stagnant — especially at the bottom end of the job spectrum. It is expected that the bottom third of working Americans will be priced out of home ownership.

Rents will continue to rise.
The rental market is a classic case of supply and demand. There is a high demand for affordable rental units and currently a limited supply. Zillow expects that trend to continue well into 2016.

Suburban areas will grow in popularity.
The affordability crisis will dramatically affect the urban centers. This means people will seek housing in the surrounding suburbs. There they will expect many of the amenities the cities offer – and close access to the urban centers – but with more affordable housing costs.

Get more updates on the Metro Atlanta housing market and news that affects the market by checking back here from time to time, and by checking out the other articles in our Atlanta real estate news section of articles under Atlanta Real Estate Categories to your right.

Posted in: Atlanta Real Estate News Tagged: Metro Atlanta housing market

Metro Atlanta Housing – Millennials Are Buying

Until recently the Metro Atlanta housing market has been missing the segment of the population known as "millennials." That generation has been described as having poor spending and saving habits. Many have finished college and are facing repayment of student loans. On top of that, rents have skyrocketed in recent years – increasing at a faster rate than incomes – making it difficult to save money for a down payment to buy a home.

Millennial Growth in Metro Atlanta Housing

Until recently the Metro Atlanta housing market has been missing the segment of the population known as millennials.

A recent report by the Federal National Mortgage Association (Fannie Mae) cites a larger number of millennials are becoming homeowners. The report says with the exception of the last housing boom from 2000-2005, the number of young, first-time home buyers has been dropping for the last 20+ years. The decline began during the Great Recession and that part of the Metro Atlanta housing market never fully recovered.

New information provided by the U.S. Census Bureau's American Community Survey shows the number of homeowners aged 25-34 fell an average of 300,000 people each year between 2007-2012. The decrease came despite the growth in the younger population during that time.

In 2013, the decrease in the number of young homeowners improved to roughly 200,000 for the year. According to the Fannie Mae report, the number in 2014 was roughly the same as 2013.

So, what does this mean for the Metro Atlanta housing market?
Experts expect the young adult population to grow between now and 2020. If this occurs, even a small improvement in the ownership rate would grow that market segment. That should affect the housing industry in several different ways.

The construction of new housing would need to adapt and adjust in the size and types of homes, as well as the geographic locations where the homes are built.
Young adults will have needs and expectations that may be different from their older home buying counterparts. Millennials are used to greater technology, for example, and more open living areas.

There will be a growing need to educate, orient and advise first-time home buyers.
Since buying a home will be a new experience for the young adults, many don't know where to start in the home buying process. They may not know there are mortgage lending programs with low down payments and other advantages for first-time buyers in the Metro Atlanta housing market.

There will be increasing demand for services and technologies designed to help young home buyers.
Millennials are comfortable with online information research and transactions. Making it easier for them to search, virtually "visit" homes and apply for financing will be key in growing the number of potential young home buyers.

We have more information on the Metro Atlanta housing market under various sections in our Atlanta Real Estate Categories to your right, and we also publish updates on Facebook and Twitter. Look for us there as well.

Posted in: Atlanta Real Estate Tagged: Metro Atlanta housing market

How a Rate Hike Would Affect Metro Atlanta Housing

The Metro Atlanta housing market has been anticipating a possible interest rate hike by the Federal Reserve Bank. Analysts say a small interest rate hike will have little effect on housing activity. In fact, there are other components that are more telling that could impact Metro Atlanta housing.

What to Look for in the Metro Atlanta Housing Market

Some industry insiders say the only potential threat that may exist as a result of a rate hike would be the effect it has on credit standards for buyers trying to qualify for a mortgage loan.

First time home buyers could potentially see loan qualifications tighten as those credit standards change. The tighter credit policies have typically been implemented to guard against a repeat of the housing crisis from less than a decade ago.

In the years preceding the last housing crisis, the Metro Atlanta housing market included borrowers that had bought beyond their abilities to repay. When the economy weakened and unemployment rose the market quickly saw how home values were artificially inflated.

There is concern among some analysts that three factors continue to plague the housing industry — despite activity and sales being the highest in the previous eight years.

1. The recent psychological shift among Millenials to become more urban, city dwellers instead of suburban homeowners.

2. The fear that Fannie Mae, Freddie Mac and the FHA are returning to their old ways with low down payment requirements that may lead to higher loan-to-value (LTV) ratios. Still, other real estate analysts say as the younger Millenials have children the trend seems to be changing as they seek better schools and other attractive features of suburban living.

3. The unemployment rate. Jobs are more of a Metro Atlanta housing market indicator that other factors. Housing is strong where there is lower unemployment. The rule of thumb is a high employment rate, the slower the housing market.

Lastly, the main reason there seems to be little fear that a rate hike may affect Metro Atlanta housing is in dollars and cents. A 1/4 point rate increase on a $250,000 mortgage only increases the monthly payment by roughly $35. Experts say it usually takes an increase of a full percentage point to make a noticeable affect on consumers.

 
For more articles pertaining to Atlanta housing, check out the Atlanta Real Estate section of our site to your right below Atlanta Real Estate Categories. Remember, we also post tips daily on Twitter and Facebook. Check us out there too.

Posted in: Atlanta Real Estate Tagged: Metro Atlanta housing market

Metro Atlanta Real Estate News – May 2015

Metro Atlanta Real Estate News - May 2015

In our Metro Atlanta Real Estate News for May 2015:

Pending Metro Atlanta Home Sales Up

Pending Metro Atlanta home sales were up in March, even though the low supply of available homes for sale is still a concern.

The National Association of Realtors said this week that its seasonally adjusted pending home sales index rose 1.1 percent to 108.6 last month. The index has climbed 11.1 percent over the past 12 months after having dipped in 2014.

Pending Metro Atlanta home sales were up in March 2015 with inventory of homes for sale still down

Overall, figures suggest strengthening demand from would-be buyers, even though there are relatively few new listings on the market and sales prices are rising at a faster rate than wages.

NAR says new home construction needs to increase and more existing homes need to come to market. Traditional buyers continue to replace investors paying cash. The association says that indicates this year’s activity is being driven by more long-term homeowners.

Pending Metro Atlanta home sales are a barometer of future purchases. A one- to two-month lag usually exists between a contract and a completed sale, meaning that the gains should appear in April and May sales numbers.

With pending Metro Atlanta home sales up, greater buying activity has yet to bring more sellers into the market, with a mere 4.6 month supply of homes on the market. Economists consider a standard market to have at least a 6 month supply of homes for sale.

Right now, new homes are coming onto the market at about half of historic norms, creating a supply-and-demand mismatch that keeps younger households on the sidelines.

Building more new homes would help boost supply, but home construction has been weak. Developers are focused increasingly on building apartments and more expensive homes for wealthier buyers.

One factor pushing up prices is a steady decline in so-called "distressed" sales, which include foreclosures and short sales. Short sales occur when the seller owes more on a home mortgage than the house is worth. Both usually sell at steep discounts to traditional Metro Atlanta home sales.

.

Lowest Home Ownership Rate in 20+ Years

While Metro Atlanta home sales continue to rise, the home ownership rate in the U.S. has fallen below 64 percent for the first time in over 20 years.

The U.S. Census Bureau announced that the seasonally adjusted 63.8 percent rate in the first quarter of 2015 is far below the 69 percent rate just 10 years ago – a time when homebuying may have been the easiest for Americans.

As investors continue to buy single-family homes to feed rental demand, and first-time buyers remain unable to afford rising prices, U.S. homeownership is taking a big hit.

Rentership has increased dramatically since the financial crisis and Great Recession, and continues to do so as the economy improves and more young people move out of their parents' homes into rental apartments. Many of them straddle jobs while managing student loan debt or other expenses, finding it impossible or extremely challenging to come up with a down payment in the current seller's market.

With millions of properties still underwater — those homes worth less than owners owe for their mortgage — there is still a stigma attached to owning a home in the wake of the 2007-2008 housing market meltdown and foreclosure crisis.

However, longer-term trends seem to be pushing homeownership rates back to "normal" levels, according to Sam Khater, deputy chief economist at CoreLogic.

In the mid-1990s pro-homeownership policies led to an expansion in mortgage credit and the homeownership rate peaked in 2004 at 69 percent. Homeownership rates are back to roughly their long-term trend between the 1960s and 1990s.

.

Metro Atlanta Housing Market Could Face Problems

With pending Metro Atlanta home sales up and not a lot of new inventory coming on the market to help slow that down, and the home ownership rate now at it's lowest level in over 20 years, could there be trouble brewing in the housing industry?

The future of the Metro Atlanta housing market depends on jobs, and people earning enough to buy houses. But experts at a recent forum are predicting problems due to income levels. Until incomes improve across the board and hurdles to credit access are eased, it is expected that the Metro Atlanta housing market will continue to perform below capacity.

Some of the nation's top economists meeting at a forum at the National Association of REALTORS®' Washington, D.C., office last week all echoed the same sentiment.

Households could be trying to save more because of the "unique uncertainty" in people today. There's a general tendency now for people to want to save more, because they're afraid. They're afraid for their jobs. What do you do? You don't spend money lavishly; you try to accumulate some. But they don't succeed.

Economists at the forum said today's Metro Atlanta housing market represents just a partial recovery from the severe downturn that hit the country about seven years ago, but they differed on how much of a role overly tight credit is playing in the slow return to a full recovery.

The problem today doesn't seem to be a credit issue. It's more of a demand issue. Borrowers have less money now after millions went into foreclosure. We're facing a whole new ball game in the Metro Atlanta housing market, and it's anyone's guess if the lower income problem will be overcome soon enough to save the industry.

Posted in: Atlanta Newsletters Tagged: Metro Atlanta housing market, Metro Atlanta home sales

Metro Atlanta Housing Market Could See Big Surge

Recent research from the National Association of Realtors (NAR) shows that distressed buyers are slowly but surely making their way back to the Metro Atlanta housing market.

According NAR’s report, nearly 1 million borrowers who were foreclosed on, short sold their home or received a deed in lieu of foreclosure over the last eight years have already purchased a new home. Another 1.5 million are expected to do so over the next five years, as they once again become eligible for financing.

The Metro Atlanta housing market could see a surge of so-called "boomerang buyers," those who lost their homes to these foreclosures, but are ready to buy again. Jill Schlesinger explains what this means in a recent CBS news report.

.
In a report earlier this year, RealtyTrac noted that Generation X and Baby Boomer “boomerang buyers” could "represent a massive wave of potential pent-up demand that could shape the Metro Atlanta housing market in the short term even more dramatically" than the millennials' entrance into home ownership.
.
"The markets most likely to see the boomerang buyers materialize are those where there are a high percentage of housing units lost to foreclosure but where current home prices are still affordable for median income earners and where the population of Gen Xers and Baby Boomers … have held stead or increased during the Great Recession," RealtyTrac noted in its report.
.
We have more news concerning the Metro Atlanta housing market in our Atlanta Real Estate News section under Atlanta Real Estate Categories to your right.
.
And don't forget, we also post tips daily on Twitter and Facebook, sometimes pertaining directly to the Metro Atlanta housing market. Find us there as well.
.

Posted in: Atlanta Real Estate News Tagged: Metro Atlanta housing market

New Roadblocks Could Affect Metro Atlanta Housing Market

There's a potential new roadblock on the horizon that could wreck havoc with the Metro Atlanta housing market, just when it's pulling out of its worst downturn in decades.

The Metro Atlanta housing market may be faced with a potential new roadblock starting August 1st

Changes to Forms Could Affect the Metro Atlanta Housing Market

On August 1st, the new TRID (TILA-RESPA Integrated Disclosure) forms replace the HUD-1 Settlement and Good Faith Estimate. The Consumer Financial Protection Bureau's mission is to rebuild the mortgage banking landscape so the industry will avoid the type of conditions that led to the Great Recession. The CFPB replaces the Department of Housing and Urban Development for oversight because HUD did not provide specific consumer protection.

The new rules will require a new three-day waiting period when there are any changes in the TRID forms. The recommendation is to allow an extra 15 days to close a transaction. In other words, 30-day contracts will now require 45 days, and 60-day contracts will require 75 days.

Clients, agents and attorneys are accustomed to routinely making changes at the closing table and still closing the sale on the same day. The new three-day waiting period will severely limit this practice for items covered in the TRID documents.

So who will be affected the most when it comes to the Metro Atlanta housing market? Maybe the moving companies.

When transactions don't close on time, it's quite common for one or more of the principals to be stuck with furniture on a moving van and nowhere to go. Anyone who has experienced this situation knows how nasty this situation can get.

If there are multiple properties involved, any delay on one home's closing could delay others from closing as well. Now imagine how much more complicated this could become if there is an error that retriggers the three-day TRID waiting period. Everyone will be scrambling to handle late closings — not just for one day, but for at least three days or more.

Other potentially costly issues that could affect the Metro Atlanta housing market include situations where one of the principals must close by a certain date to take advantage of the tax breaks on the sale of their primary residence — or situations where one of the principals is involved in a 1031 tax-deferred exchange. The lost tax-benefit costs of a late closing could run into hundreds of thousands of dollars.

It doesn't take a rocket scientist to also figure how rate locks on mortgages could be severely affected. A buyer locks in an interest rate for 60 days. There is an increase in interest rates. This means the lender can no longer sell the buyer's loan on the secondary market. As a result, the lender demands additional documentation. The documents are submitted in a timely matter, but the underwriting department takes days to get to the changes. In the meantime, the buyers' interest rate lock expires, and the property doesn't close on time. At this point, the lender requires a higher interest rate in order to close the transaction.

Beginning to get the picture on the ripple affect all this could have on the Metro Atlanta housing market?

As we creep closer and closer to the August 1st changeover date, there will be unexpected delays in obtaining loan approval, potential changes in the documentation during the transaction, and a host of problems we probably can't even begin to imagine. Stay tuned, we'll update you again as the time draws closer.

Get more information as it pertains to the Metro Atlanta housing market in our section on Atlanta Real Estate to your right under Atlanta Real Estate Categories.

Remember, we post tips daily to Twitter, and also on our Facebook Page. We'd love you to check us out there too.

Posted in: Atlanta Real Estate Tagged: Metro Atlanta housing market

Metro Atlanta Real Estate News – April 2015

Metro Atlanta Real Estate News - April 2015

In our Metro Atlanta Real Estate News for April 2015:

Renters Squeezed By Higher Metro Atlanta Housing Costs

Renters are being squeezed in the Metro Atlanta housing market by a disproportionate growth in rental costs on one side and stagnant income on the other.

New research finds that rent growth is far exceeding wages, according to the National Association of Realtors.

The NAR reviewed data on income growth, housing costs and changes in the share of renter and owner-occupied households over the past five years across the country. Lawrence Yun, NAR chief economist, says the disparity between rent and income growth has widened to unhealthy levels and is making it harder for renters to become homeowners.

Income Not Keeping Up With Metro Atlanta Housing Costs

The Metro Atlanta housing market is seeing a disproportionate growth in rental costs and stagnant income

In the past five years, typical rent rose 15 percent while the income of renters grew by only 11 percent. The gap has worsened in many areas as rents continue to climb and the accelerated pace of hiring has yet to give workers a meaningful bump in pay.

The share of renter households has been increasing and homeownership in the Metro Atlanta housing market is falling. Those financially able to buy a home in recent years were insulated from rising Metro Atlanta housing costs since most take out 30-year fixed-rate mortgages with established monthly payments.

Moreover, a typical homeowners’ net worth climbs because of upticks in home values and declining mortgage balances. The result has been an unequal distribution of wealth as renters continue to feel the pinch of increasing Metro Atlanta housing costs every year.

Meanwhile, current renters seeking relief and looking to buy are facing the same dilemma: home prices are rising much faster than their incomes. With rents taking up a larger chunk of household incomes, it’s difficult for first-time buyers – especially in high-cost areas – to save for an adequate downpayment.

NAR’s research analyzed changes in the share of renters and homeowners, mortgage payments, median home prices, median household income for renters and the rental costs in 70 metro areas. Even with the tax benefits of owning versus renting, affordability is still the major stumbling block for many who would like to enter the Metro Atlanta housing market as an owner rather than a renter.

Speaking of taxes and the benefits of owning versus renting, we’re devoting the rest of this month’s newsletter to the subject of taxes…

.

Some Last Minute Moves for Taxes

Here we are, time to do taxes, and this is no April fools joke.

Taxes are due April 15th. Here are some tips for you last minute filers

With just two weeks left of tax-season 2015, here are a few actions worth taking to save you money on your 2014 taxes, jumpstart savings for you or a relative, or possibly get a tax break on health coverage for 2015.

  • Contribute to an IRA. You have until April 15th to contribute to a 2014 traditional IRA, potentially reducing your taxable income. The maximum deductible contribution is $5,500 for those under age 50 and $6,500 for those age 50 and older. Your deduction will be limited based on income and whether you or your spouse has a retirement plan at work. Do you own a small business? Then you might be eligible for higher income and contributions limits through a simplified employee pension (SEP) IRA. Go to irs.gov and search for IRS Publication 590, “Individual Retirement Arrangements,” for details on contributions and income limits.
    .
  • Contribute to the IRA of a young relative or someone else starting out. Lower-income workers of all ages will benefit in three ways: more savings, less taxable income, and, if they’re not medically insured through your plan or one at work, a larger insurance premium tax credit.
    .
  • Apply for health-insurance coverage. Taxpayers in states with state-run health-insurance Marketplaces who didn’t realize they would owe a penalty for lack of coverage in 2014 can take advantage of extended sign-up periods for 2015 coverage, through April 17th or even later. They may find themselves eligible for income-based tax credits to use toward premiums.

.

Don’t Let Tax Identity Theft Happen to You

While we’re on the subject of taxes, let’s look at a growing problem and hopefully help you avoid calamity.

Tax-related identity theft can turn your life upside down and take years to resolve. You may know of someone who has had this happen to them. Someone submits an electronic tax return containing personal information about the person along with a bogus return address. The mess takes piles of paperwork, a tax advocate, and can take years to resolve.

Fortunately, consumers are more aware of the problem, and the IRS has made strides to educate the public, help victims, and prevent a recurrence. Here’s some advice to flag potential problems:

I.D. Protection Tips

Protecting sensitive information in the first place and following up quickly to minimize the damage are paramount. Healthy skepticism can go a long way. For instance:

Ignore e-mails and social media purportedly from the IRS. The IRS will NEVER contact taxpayers by e-mail, text message, Facebook, Twitter, or other social media. Nor does it send e-mails stating that you’re being audited or getting a refund. That’s a “phishing” scam, which you should report at phishing@irs.gov.

Confirm the authenticity of letters from the IRS. Check the agency’s official contact page.

Check the URL of “IRS” tax information pages. The agency’s website begins with www.irs.gov. Others are fakes.

If You Become a Victim

Hundreds of thousands of people have been victimized by identity thieves. To help those taxpayers, the IRS is:

  • Assigning victims a unique personal identification number. It must be included on their tax returns. This has given a lot of people peace of mind. It means faster processing and a speedier refund.
    .
  • Speeding up victim case resolution. Because resolving I.D. theft cases can take up to six months, the IRS has assigned more employees to sort through the details and streamline the process.
    .
  • Lending an ear. The IRS now has a dedicated section on its website devoted to the problem. In addition, it has implemented a special phone number for victims. The IRS Identity Protection Specialized Unit is available at 1-800-908-4490.

If you haven’t already filed your taxes, good luck over the next two weeks. And remember, filing an extension for your taxes doesn’t mean an extension to pay. You still must submit what you think you’ll owe whenever you get around to filing or face penalites and interest from April 15th to the day you finally pay up.

Posted in: Atlanta Newsletters Tagged: Taxes, Metro Atlanta housing market, identity theft

Metro Atlanta Homebuying Season Outlook

There have been all sorts of reports and predictions coming out about the Metro Atlanta homebuying season outlook. Freddie Mac's Deputy Chief Economist, Len Kiefer, gives Freddie Mac's preview and prediction of the March 2015 U.S. Economic and Housing Market Outlook in this short video report…

.
We have more news as it relates to Metro Atlanta homebuying in the Atlanta Real Estate News section under Atlanta Real Estate Categories to your right.
.

And don't forget, we also post tips daily on Twitter and Facebook, sometimes pertaining to Metro Atlanta homebuying. Find us there as well.

.

Posted in: Atlanta Real Estate News Tagged: Metro Atlanta housing market

Posts navigation

Next Page »

Property Quick Search

Advanced Search Map Search

Atlanta Real Estate Articles

  • Metro Atlanta Real Estate Interest Rates and Affordability
  • Metro Atlanta Mortgage Rate Outlook: Rates Rising?
  • Metro Atlanta Economic News: Millennials and Housing
  • Metro Atlanta Home Improvement Ideas: Ready, Set, Sell!
  • Metro Atlanta Home Buying Strategies: Our Best Advice

Atlanta Real Estate Categories

  • Atlanta Homes for Sale
  • Atlanta Real Estate
  • Atlanta Home Buying Tips
  • Atlanta Home Selling Tips
  • Atlanta Home Improvements
  • Atlanta Home Inspections
  • Atlanta Insurance
  • Atlanta Mortgage Info
  • Atlanta Economy
  • Atlanta Real Estate News
  • Atlanta Newsletters
  • Atlanta
  • Taxes

Contact Us

Use this form to contact us via email. Thank you!

    About Brant Meadows

    We specialize in Metro Atlanta real estate for sale. Brant Meadows has been helping families buy homes for more than 16 years. Home Hunters Realty of Atlanta, Georgia, is an exclusive buyer's agency serving home buyers only.

    Other Searches

    • Buford GA Condos and Town Homes
    • Cumming GA Condos and Town Homes
    • Decatur GA Condos and Town Homes
    • Cumming GA Land and Lots

    Contact Us

    HOME HUNTERS REALTY, INC.
    2605 Holly Springs Road
    Marietta, GA 30062
    770-889-8859
    © 2023 · Home Hunters Realty, Inc. · Privacy Policy ·
    Design and Hosting by Hudson Enterprises, Inc.