Buying a new home in Metro Atlanta in 2023

Buying a new home in Metro Atlanta in 2023

When the ball drops at midnight, there’s often a great deal of discussion about creating a new you in the new year. How about a new home in the new year? If you’re making a move to metro Atlanta, or even looking to relocate within the area, you’ll be glad to know that the city and its surrounding areas boast the kind of market that could make 2023 the perfect year for a new home purchase.

“Atlanta is a very strong housing market with robust economic growth and job creation. And as a Sunbelt state, attracts home buyers seeking our warmer southern climate,” says Carol Morgan, founder and president of Denim Marketing. “Additionally, the rate of appreciation on homes in Atlanta is above the national average. The fourth-largest new home market in the nation, it’s a great time to buy in Atlanta.”

Here, Morgan shares her top insights about what to expect from the local home buying market during the next 12 months, as well as tips for navigating the process successfully so you can make a sound financial investment. With this information in hand, you will be able to make the best decision when it comes to purchasing the new home of your dreams.

• Housing affordability has improved, and price acceleration has slowed.

Price increases are at the lowest we’ve seen since the beginning of the pandemic, coming in now at just five percent. Year-to-date, home prices are up 14 percent over 2021, but higher interest rates are putting downward pressure on those home prices.

• The market is expected to stabilize, so we’ll stop seeing the historic price spikes.

We predict that home prices will start to moderate during the year and be up anywhere between six and eight percent. By 2024, price appreciation should be back to the long-term normal of four to five percent. As far as interest rates, the Federal Reserve at some point will have to pivot, and rates will moderate down in 2023 to around five percent, which is sustainable long term.

• Marry the house, date the rate.

Interest rates have started to come down. We expect them to moderate some throughout 2023; however, rates are closely tied to the Federal Reserve’s actions. Whether they are going to take a break and give the economy a chance to adjust before making further increases is yet to be seen. However, when rates do come down, you can refinance. You aren’t stuck at the current rates for the life of the loan.

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