Millennials are now entering their peak nesting years at a time when the construction of single-family homes still hasn’t recovered from the cutbacks that followed the financial crisis. Nationally, inventory is 9% lower than a year ago, and all but four of the 35 largest markets tracked by Zillow now have fewer homes for sale than at the same time last year.
“We’re seeing low inventory in places not usually associated with housing shortages—places like Nashville, Raleigh, and even Kansas City,” says NAR chief economist Lawrence Yun.
Home values rose 5.7% in 2015, according to the closely watched Case-Shiller 20-city index. Most economists think prices will keep climbing, at least in the short term: The NAR is calling for a 4.4% increase in existing-home prices this year and 3.4% in 2017; other economists and strategists also put 2016 price growth in the 4% to 5% range.
In the projected five year forecast for the top 20 metro areas, job growth and the emergence of new households are expected to give Atlanta’s housing market a steady boost over the next few years.
With that being said, Atlanta will be seeing a boom in the housing industry very soon. For more information on Atlanta Real Estate Forum, visit www.atlantarealestateforum.com.