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Today’s All About Real Estate guest on Atlanta Real Estate Forum Radio is Bud Rogers, director of business development with Metrostudy. A national company, Metrostudy visits active communities in each marketplace every quarter to count the number of new home starts, closings and vacant or developed home sites. This gathered data is then put into a software package that can be used by real estate industry professionals to make knowledgeable, smart decisions.
Rogers says that so far in 2015, Metrostudy has heard good things from its real estate partners. Home showings are up 50 percent from this time last year, which is a good indicator that sales will be strong this year as well. However, one major problem is that a shortage of homes may make it difficult for these prospective home buyers to find the home they desire.
One of the reasons we’re seeing this shortage is that the metro Atlanta area is running out of desirable locations to build. Another aspect is that many homeowners place their home on the market, and once they begin searching for a new home, they realize their current home and location is the best place to be thanks to rising home prices and limited homes to choose from. Once they come to this realization, many homeowners are taking their home back off the market, which has contributed to the low supply of homes. Current home supply in Atlanta is at just 3.8 months worth. However, it’s important to note that inventory has recently increased by 9 percent.
Rogers states that Metrostudy expects two major things to happen in 2015 – land development will increase above I-20, while more building activity will take place south of I-20. Atlanta is running out of desirable home sites in the northern arc, which has been so popular over the last one to two years. Now, the Southside is resurging, as new home starts were up 28 percent last year compared to around 15 percent year-over-year on the north side of I-20.
Another prediction Rogers makes for 2015 is that Millennials will continue to come back into the market as they realize that owning a home is an affordable option. Most Millennials do want to own a home, but they’re not always aware that they can own with modest credit and a modest income. Rogers states that more professionals in the homebuilding industry need to stress this fact, and more builders need to be delivering new, affordable homes.
One of the leading indicators of how the housing marketing will do is job growth. Currently, the Atlanta job market is at an all-time record high employment level, as there are a higher number of workers currently employed than at any previous time in history. While it can be argued that wages and earned income is not as high as it used to be, it’s still a great indication that job growth has been so strong.
Finally, Rogers is asked to make his prediction for the amount of new home starts he expects to see in 2015 – around 18,000!
To learn more about Metrostudy’s predictions for the 2015 housing market in Atlanta, listen to the full podcast above. You can also learn more or contact Bud Rogers at www.Metrostudy.com.
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Atlanta Real Estate Forum Radio’s “All About Real Estate” segment airs on Fridays and highlights the movers and shakers in the Atlanta real estate industry – the home builders, developers, Realtors and suppliers working to provide the American dream for Atlantans. For more information on how you can be featured as a guest, contact 770-383-3360 or via the contact form on this site.
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