Historic Marietta Office | 776 Whitlock Avenue, Marietta, GA 30064 | 770-422-6005 | Harrynorman.com/HistoricMarietta
A QUICK LOOK AT 2021 REAL ESTATE MARKET
THE FORECAST
FOR ATLANTA
IN 2021
LOW
INTEREST
RATES
STRONG
MIGRATION
Following a unique and often unpredictable 2020, Atlanta has entered
what looks to be a very strong housing market in 2021. The challenge of
limited inventory, which impacted much of 2020, will continue for at
least the first half of 2021, and in some areas this challenge may extend
until the end of 2021. We will see a continuation of recovery with interest
rates staying below or close to 3% for 30-year fixed rates for much of
the year.
The compromise of location for home features will be one to watch
in 2021 as more companies confirm plans to shift to permanent or
semi-permanent work from home arrangements. Throughout the last
twelve months as people have spent an increasing amount of time in
their home, many re-evaluated the premium price of location over home
function and comfort. Inner-city and urban areas continue to hold value
and appeal, but home inventory becomes increasingly scarce as you
move to suburban areas.
Buyers are moving up price brackets to secure their dream home. As
demand continues to outpace supply more buyers will stretch their
budgets. Affluent buyers in higher income brackets that have been
less impacted by economic hardships in 2020 find themselves with
greater disposable income going into 2021. Income usually spent on
MODERATE
INVENTORY
INCREASE
REBUILT
ECONOMY
vacations, entertainment and shopping is now being diverted into
creating pleasure in the place where it can be enjoyed – the home!
Demand will continue for luxury inclusions such as pools, home gym
and sauna, outdoor kitchens, and bigger landscaped gardens.
The rise in multigenerational homes will continue. What started
in 2020 as a safety reaction is expected to be a lasting trend as
families re-evaluate housing choices for older parents and family
members. There has been an increase of caring for the eldering in
your home. This is driving demand for larger homes with increased
bed and bath counts, and of course easy accessibility. Add to this a
larger proportion of younger people losing jobs and moving home
as a result of the pandemic and now there is a multigenerational
squeeze from both ends of the spectrum.
The Atlanta Housing Market has all the ingredients for success in 2021:
Stable Price Growth + Buyer Demand + Low Interest Rates +
Economic Growth + Population Growth
The only obstacle to a thriving market in 2021 is short supply of
homes. If consumer confidence continues to improve, Atlanta could
break the record performance of the past two years.
For a full report including:
Home Inventory | Owning vs. Renting | Housing Affordability | Georgia’s Economy | New Construction
visit online at HarryNorman.com/Insights
6 | HARRY NORMAN, REALTORS® The above information is believed to be accurate but is not warranted.
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