For the first two weeks that the world shut down in March of 2020, like almost everyone, I stayed home, binged on Netflix, cleaned closets, and caught up on work items. Then something amazing happened! I received a contract on one of my sellers’ homes and we needed to find a new place for them to live. So, we donned our masks, booties for our shoes, armed with Clorox wipes, hand sanitizers, and set out on a mission.
This was the start of an amazing 2-year journey-- one that I have never seen in my 30+ years in residential real estate. While everything else, except essential services closed, Atlanta’s real estate activity began to soar. McMansions built over 20 years ago that had been out of demand suddenly became a Mecca for people and extended families that wanted more space and a place for everything and everyone. Suburban homes with large lots and swimming pools became hot commodities. Atlanta city dwellers no longer tied to their job commutes and able to work from anywhere were able to move across town or across Country. Our great Atlanta metropolitan area became a highly desirable destination for people across the Country due to our moderate climate, friendly personal and business environments, and reasonable cost of living. Due to this high demand, we saw our home values increase 12% in 2020 and 21% in 2021.
As we moved to 2022, our strong market continued until wild inflation reared its ugly head. Due to global economic conditions, rising interest rates and an uncertain stock market, we are now seeing a Market Shift! We are experiencing a Deceleration of home prices….. this means that home prices are appreciating but not at the record-breaking pace we have seen in the last couple of years. Not at all like the Depreciation we saw during the Great Recession of 2008-2012 where home prices fell as much as 30%. Core Logic is predicting that 2022 should see average appreciation of between 10 and 11%. This will be followed by a more normal level of appreciation of 4 to 6% for 2023 and 2024 forward. We are heading toward a Normalized Market! We are already seeing an increase in the number of homes for sale, longer days on the market and fewer, if any bidding wars. I will continue to keep you updated on the roll of the market!