Why now is a good time to buy a new home

Brought to you by – Berkshire Hathaway HomeServices Georgia Properties’ New Homes Division

Metro Atlanta, like other major cities across the southeast saw unprecedented real estate growth over the past couple of years and while home prices have leveled off, mortgage rates have increased, leaving some buyers reluctant to move forward with a home purchase. So, what does this mean for someone who is considering a new home?

Lori Lane, President of Berkshire Hathaway HomeServices Georgia Properties’ New Homes Division gives some insight.

“My team and I work with some of the most respected builders all across the Atlanta Metro area,” said Lori Lane, “I am often asked if it is still a good time to buy a new home or should I wait? My question is what are you waiting for?”

First, it’s important to understand what is happening in today’s housing market. The inventory level of homes in Atlanta is still at a record low with a deficit of 63,000 homes according to MarketNsights, John Hunt, and total inventory is now at the lowest level in seven months. A main reason the predicted collapse in home prices did not materialize. This is reinforced by Lawrence Yun, chief economist, and senior VP of research at the National Association of Realtors (NAR) who said, “even with a projected reduction in home sales this year, prices are expected to remain stable in the vast majority of markets due to extremely limited supply. Mortgage rates have trended down, and the new normal is 5.5% - 6.5%. So…for someone waiting for a 3% or 4% mortgage rate, it’s not going to happen.”

So, what does this mean for someone contemplating buying a new home? Today’s buyers need to realize that prices are not going to drastically drop. If you are sitting on the sidelines anticipating lower prices you may end up disappointed. In fact, home prices will continue to increase over time. According to NAR, historically, real estate has had a long-term, stable growth in value with median single-family existinghome sale prices increasing on average 5.2 percent each year since 1972.

The next question is usually about waiting for interest rates to change. Atlanta continues to be one of the most desirable places to live in the country, According to economists at NAR, the metro Atlanta area is the best possible place to buy a house in 2023 based on a variety of factors. Buyers will continue to relocate here and when rates drop, more buyers will jump back into the market. With so little inventory that could put us back to multiple offer scenarios which will drive home prices up. Instead of being outbid for the home you want, go get the home you want now and refinance later when rates decrease.

I, of course, recommend new construction for several reasons. Many home builders are currently offering incentives including interest rate buy downs, 30-year fixed interest rates as low as 4.99%, which can reduce your monthly house payment by hundreds if not thousands of dollars. In addition, some will pay towards closing costs, so you need less cash up front. Some builders offer move-in appliance packages as an incentive to help reduce the cost of big purchases. New construction gives you updated features, brand new appliances, a new roof, a builder’s warranty along with vendor warranties. A new home is often more energy efficient bringing costs down even more. So before more people jump back into the market and you have even fewer homes to choose from, remember Builders have some inventory out there and homesites you can build your dream home on. To sum it all up, the best deal you are going to get on your new home may be right now.

For information on Berkshire Hathaway Georgia Properties’ New Homes Division, our awardwinning builder clients and new home communities, or to contact one of our on-site sale specialists, visit BHHSgaNewHomes.com. Equal Housing Opportunity.