Will this year be a good opportunity for real estate agents of Atlanta, GA? I have been asked this question by several real estate agents. After the impressive growth of the Atlanta real estate industry in 2015, real estate agents and experts are anticipating that home sales in Atlanta will reach record levels this year, but the question cannot be answered merely by guesswork.
The performance of a real estate market can only be predicted after a thorough analysis of market trends. Several factors, such as population demographics, income level, housing supply, interest rates, and local rules and regulations, drive a real estate market. Therefore, in order to predict whether the Atlanta real estate industry will manage to live up to the expectations of real estate agents and experts, we need to review the market trends.
In this article, I am summarizing three key factors that are likely to influence the Atlanta real estate industry in 2016. Keep an eye on these trends and modify your real estate practices accordingly to list and sell more properties this year.
Demographics of a population describe its composition, such as gender, income, race, age, and population growth rate. Demographics are one of the most overlooked factors that influence the real estate purchasing behaviors of a population. If you’re working as a real estate agent in Atlanta or you run a real estate firm, it is important that you keep an eye on major demographic shifts in your area.
When you review the demographics of the population residing in Atlanta, GA, you get to know that significant numbers of people living in Atlanta are millennials. Since millennials are experiencing an increase in their income and their family size, they are likely to remain the biggest buying force of Atlanta in 2016.
Interest rates also have a major impact on how a real estate market performs since they directly influence the buying capacity of homebuyers. When interest rates fall, the cost to obtain mortgage also decreases which consequently creates higher housing demand.
With interest rates expected to rise slightly in 2016, it is expected that the Atlanta real estate market will experience a slight slowdown in the coming year. However, since the income levels are also expected to increase, the effect will be neutralized and market will continue to grow at the anticipated rate of 8 to 10 percent.
Another factor that influences the real estate industry is the overall health of a region’s economy. Generally speaking, when the economy is sluggish, so is the real estate industry. This mainly occurs due to increasing unemployment rates, which result in decreased buying capacity of individuals. Since demand for real estate remains largely elastic, individuals experiencing diminished income tend to postpone their real estate buying plans.
Since Atlanta is experiencing strong growth in key factors of the economy, the real estate industry is expected to continue its growth despite housing supply issues. The lower cost of doing business in Atlanta is also likely to result in corporate relocations which will fuel the commercial real estate market.
In order to meet success in this highly profitable industry called real estate, it is important that you stay updated with the latest market trends and happenings. To learn more, keep reading my blogs on Luther Ragsdale.com and Platinum Real Estate.
I am looking forward to see you in my upcoming million dollar producer workshop. For more information visit lutherragsdale.com. You can also download my free eBook ‘Social Media for Real Estate Agents’ to learn the tips and tricks of finding real estate leads online.