HOME TRENDS

CONTINUED FROM PAGE 46 economy could mean that things will improve for homebuyers.

“We’ll probably see more homes on the market, which is a result of the economy and the real estate market continuing to strengthen,” Johnson said. “In the Midtown and Intown markets, we’re still seeing an increase in the desire for luxury condos. This is great, as there are some incredible projects coming out of the ground now.”

In 2015, Intown homebuyers experienced low inventories and slowly rising prices. Homes sold quickly, too. The National Association of Realtors reported that the median number of days to sell a home in Atlanta has been 57 days.

“As of Nov. 30, 2015, inventory in metro Atlanta was at a 4.4-month supply, and traditionally, a six-month supply is a balanced market,” Vic Miller explained. “The lack of inventory was mostly in the lower- to mid-price ranges.”

There’s hope that the number of firsttime homebuyers will rise as economic conditions and housing inventory improve, and as lending standards return to more normalized conditions. “There’s significant pent-up demand for homeownership,” Vic Miller said. “Besides tight lending standards and low inventory, college loan debt is making it harder for first-timers to build up their down payment.”

Askew doesn’t anticipate a shift back to a buyers’ market any time soon. In fact, he foresees home prices appreciating at a rate between 7 and 11 percent

(depending on the property’s submarket). He added that ITP single-family homes priced under $500,000 will be especially hot in the upcoming year.

Resale bungalows under $500,000 and new construction under $750,000 are very desirable, reported Vic Miller, while housing at the $200,000 to $300,000 price point is extremely hard to find. “We need entry- to mid-level condos for first-time buyers. We need condo construction financing now.”

Burell agreed. New condo products that came online in 2015 were for the higher price point buyer, and there weren’t many projects started for those at a lower price point. “There’s definitely demand out there, but developers have struggled to access financing options available for lower price point development projects. In 2016, keep a look out for developers seeking to begin to develop products for this target buyer.”

Additionally, increased housing prices could mean that more sellers who’ve been upside down or underwater may be able to put their homes on the market. Housing starts were up in the fall, so new construction inventory should increase next year.

“Unfortunately, salaries have not kept pace with Intown home prices, so many millennials have found themselves priced right out of the housing market,” Anne Miller said. “Land values Intown are so high that many new condos or apartments are priced outside their reach. Some buyers have widened their searches to include areas a little further out, or to include smaller properties.”