According to a Federal Housing Finance Agency report, home prices in Georgia have seen an annual appreciation of 11.24%, higher than that of the U.S, at just 7.14%. On average, from 2005-2010, Georgia experienced a 72.3% increase in housing prices, while the U.S averaged just 35%.
In 2010 alone, Georgia ranked number one for new foreclosure filings, with 10% of new foreclosures across the country taking place in Georgia. In April 2011 alone, more than 200,000 homes received foreclosure warning letters saying they would receive some filing within three months.
The high rate was attributed to both flawed legal and declining property values.
Georgia homes are being sold quickly, with a short time on the market for buyers. The state experienced an 87.6% sales to listing ratio, compared to the national average of 54%. Home values in Georgia were higher than the national average overall (based on Atlanta real estate). Home prices in Atlanta were about $3050 more expensive than the average across the country ($190,400). Still, there is not much difference between sale prices and purchase prices. This means that although houses are listed at a slightly higher price than usual, they do not tend to take too long before they sell.
The Peach State is one of the top five states with the highest home price appreciation, according to the Federal Housing Finance Agency (FHFA). Average home prices have been increasing between 7 and 12 percent per year from 2013 to 2015. In 2016, this growth increased to 15%.
According to new statistics from Realtor.com, the national median listing price climbed by 8.3 percent from January to April this year. The median price was $375,000 as of April 29.
For the past 40 weeks, home prices have risen by double digits. The median price of listing was up 15.5 percent year over year for the week ending May 15. (Rents are up 2.7 percent on average, the fastest increase since March.)
Here are the three main reasons why prices for homes in Georgia are rising fast:
Georgia has had the lowest home inventory in the last decade. According to Realtor.com, there is currently a 4.6 month supply of homes on the market in Georgia. This means that if nothing new is built or put on the market, they will all be sold within five months of writing this article (April 2017). On top of that, only 36% of homeowners are selling their homes. On average, throughout America, there is an 89% homeownership rate. This disparity between Georgia and other states in America may be because many people can afford to buy brand new houses but instead upgrade into more significant properties.
According to the Bureau of Labor Statistics, Georgia added almost 100,000 jobs in 2016 (99,400). Over the last ten years, Georgia's average number of jobs created by only 46,000. This situation causes home pricing to increase because people have more disposable income, increasing the number of people buying new homes.
The health of a state's economy is often the main driver behind the health of its real estate market. A good indicator for determining how well a state or city is doing is its poverty rates, cost of living, unemployment rate, and GDP per capita. According to AreaVibes, Georgia has one of the highest GDP levels per capita ($71,589), the second-lowest unemployment rate (4.2%), and an average cost of living. These strong indicators mean that census data show a reduction in the unemployment rate by 2% from 2015 to 2016.
However, in August 2021, the unemployment rate fell by 0.2 percentage points to 5.2 percent. Following a substantial reduction in July 2021, the number of jobless persons fell to 8.4 million. Both indicators are much lower than they were at the end of the February-April 2020 recession. However, they are higher than before the COVID-19 epidemic (3.5 percent and 5.7 million in February 2020).
Also, poverty rates, cost of living, unemployment rate, and GDP per capita are all factors that affect home prices.
If you're thinking about selling your house to a home buying company, now is the time. Home buying demand has been higher than ever in recent months, and it doesn't look like this trend will be reversing any time soon. With prices on the rise, inventory shrinking across all markets, and mortgage rates at their lowest point since November from last year, Cash Home buyers in Georgia are starting to get desperate for homes that fit their budget. So if you want to take advantage of these hot market conditions before they cool off again or before potential interest rate hikes come into play, now is the best time to sell.