All indications are that Atlanta continues to be a good metropole to invest in as we move into 2020. When assessing potential areas to invest in, a good place to start is with the local economy. According to the Federal Reserve’s October 2019 “Beige Book” report (which looks at economic conditions in key regions across the U.S.), Atlanta’s economy expanded at a modest pace over the past year. It stated that residential real estate activity improved, while non-residential activity was stable. Manufacturing activity has rebounded since the previous report.”
In addition, The Bureau of Labor Statistics, revealed that the unemployment rate for the Atlanta-Sandy Springs-Marietta metropolitan area was 3.5% as of August 2019, a far cry from the recession peak of nearly 11% during 2009.
These factors paint a positive picture of the Atlanta economy, and are backed up by additional research reports such as PwC’s Emerging Trends in Real Estate®: United States and Canada 2020. Their report places Atlanta in the number 8 spot, up from 11 in last year’s survey. It placed 10th in local expectation of investor demand in 2020. “That perception is validated by Atlanta’s 3.6 percent share of U.S. transaction volume over the past three years, and its 3.2 percent share in the first half of 2019; this compared to a 1.8 percent share of the total U.S. population.”
Analysis of recent and anticipated metro-area growth, as well as its regional reputation for business-friendliness, relatively low costs and taxes, were noted as the drivers for Atlanta’s rise into the survey’s top ten.
An overview of the housing market
We always advise that you do your homework before committing to any form of real estate investing. The Atlanta REALTORS® (ARA), Market Brief on residential housing statistics in metro-Atlanta, compiled by First Multiple Listing Service (FMLS), is a useful resource as it provides the only regionally focused synopsis of monthly sales and home prices for single family residential properties. Their September 2019 market brief showed that with regards to price, the median price has continued to rise and is still up 7.3%, with the average sales price up 6.2%.
Atlanta area housing inventory experienced a decrease of 0.1% from September, 2018. New listings were up 1.7% from September, 2018 and down 5.0% from the previous month. The month’s supply over a 12-month period increased to 3.1 months, which is indicative of a buyer’s market.
DeAnn Golden, President of Atlanta REALTORS® Association said “The entry-level market ($100K to $500K) remains a seller’s market with many properties selling quickly and some with multiple offers. We need more housing options in this segment to meet the demand. The middle tier market ($500K to $1M) is a more normal market averaging around 6 months of supply. While the Luxury market ($1M+) remains a buyer’s market. Properties over $2M now show 52 months of supply.
Of the market as a whole, Golden said, “Long-term trends for Metro Atlanta are very positive…The future demand trends will cause home values to continue rising steadily over time. Now is a great time to buy, sell or invest.”
In terms of investment, the PwC survey revealed some interesting trends. It noted the increasing diversity of lenders over the past several years, and said the trend showed no sign of slowing down. Respondents confirmed that there are lots of lenders for all products, and that this enabled borrowers to shop around. Big bank restrictions can make it hard to get money, said one, “So you need to look at other sources of capital, perhaps cross-border sources or other non-traditional lending in this small market.”
The survey closed its commentary on Atlanta stating that “on balance, Atlanta is on investors’ short list and its position as a major landing spot for capital seems assured.”
YDL Property Investments has more than fifteen years’ experience educating, and guiding our clients through the challenges involved in international property investment. To learn more about buying-to-let, or buying-to-renovate-and-sell, or our private mortgage lending investment opportunities, visit our website at www.ydlpropertyinvestments.com or contact us today to arrange a one-on-one appointment.