North Atlanta Housing Update | November 2022
Well, the housing shift in North Fulton is here and will impact pretty much everyone in some form or fashion. On a national level, millions of people who work in the housing industry, homeowners and local governments will be exposed to this correction and may have to face future lower property tax revenue in 2023. Everyone hopes for a short and shallow correction but the ultimate outcome is anyone’s guess.
You can see in the trends in North Fulton, which covers Roswell, Alpharetta and Johns Creek, October saw a significant decline on a year-over-year basis for most of the key indicators. New listings, number of sales, and the number of listings going to pending status were down.
While the median sales price is up 8% on a year-over-year basis, it’s important to know that since the June high, we have seen 4 consecutive months of decline, which is now 16%. What does this mean? When it comes to pricing a new listing, one will need to pay close attention to comparative listings that are “active” and “under contract” to better understand where the market is at and less on historical pricing.
Interest Rates
With interest rates having doubled over the last few months, the impact to buy a new home due to higher rates if pretty clear. If you are looking to buy a $500,000 home with a 30 year loan at 20%, the monthly cost is $3,099 vs. $2,130 just a few months ago. This takes into account an estimated cost for insurance, taxes, and HOA dues. In other words, if a buyer wants to purchase a $500,000 home today, it will cost 35% more in monthly payments.
Forecast
With rising rates and inflation still running high, we see a softening housing market for Roswell and North Fulton. Compared to other markets in the U.S. and even Georgia as a whole, Roswell and surrounding communities in North Fulton historically have faired better on a relative basis. Our lifestyle and local economy have a lot to offer that other markets do not.
If you’re looking to make a move, here are some things to consider:
- You should price your home at, or below, the competition. Missing the mark will cost you time and money.
- Failed listings are close to 30%. Listing with a superior marketing package and having your home properly prepared to list will net you the most in a softer market.
- The amount of time it takes a home to go under contract will continue to go up, and having a realistic listing plan will be key.
We are always here to help! If you have any questions, please reach out to us.