The economic forecast still cast a cloud over the real estate market. Few building (new construction) permits are being applied for as foreclosures & short sales are still impacting the market. Manufacturing reports have been disappointing & wholesale inflation is at its highest rates in three years. There has also been a recent spike in bonds & home loan rates w/ news that economic growth should slow. On a positive note, the sign that unemployment claims are down suggest companies are hiring.
In the mist of such news, Atlanta’s current RE market is fighting to recover. There were fewer home closings in April of 2011 than in April of 2010 but there were 10% more closings this year than in April 2009. Remember, last year saw a bump in sales due to the housing stimulus. On the other hand, inventory for single family homes was lower than the previous year. This means that the average sale price for single family homes may stabilize since there are fewer options for potential buyers. While lenders aren’t as tight on lending as in years past, they are requiring larger down payments. High commodity prices (food & energy for example) are putting a strain budgets, thus making such down payments harder to attain. For those of you that are in the market to buy, there are several opportunities out there. For those that are looking forward to home ownership in the near future, stay tuned as I report market conditions, answer questions, and provide the resources that will help you make an informed decision.
