Atlanta Real Estate Future

Posted on December 16, 2019 by Nancy Liu | Category: Real Estate

According to the latest information from Office of Federal Housing Enterprise Oversight, the national average property price has increased by 13.43% from 2004 Q2 to 2005 Q1, the fastest growth rate in the past twenty-five years. However, the property price of metro Atlanta has only increased by 5.32% for the same period. In addition, the median price of a single family house in metro Atlanta is $166,500, which is lower than the national level. In the past five-year, the national property price maintained a high growth rate, ranging from 10% to 20%. In Atlanta, however, the growth rate ranged only from 3% to 5%. These data show a mature and stable real estate market in metro Atlanta and imply tremendous investment opportunities. Investing in a mature and steady housing market helps maximize the return, while minimizing the risk of burst of real estate bubble.

Atlanta has become a pivotal city in the south-east America by several decades of development. 1996 Olympics further infused new vigor in its economic growth. Atlanta is home for many world class enterprises, such as Coca Cola, CNN, and UPS, etc. Fourteen corporations from the American Fortune 500 headquarter in Atlanta, making it the number 3 city in US in terms of quantity, right after New York and Huston. It is noteworthy that while most corporations headquartering in New York and Huston are from traditional industries, their counterparts in Atlanta cover a wide range of new industries that are usually believed to have broader prospects.

The demography shows a downward trend of population in some high-density areas such as California, Boston, New York. For instance, nearly 500,000 Americans have moved out from California in the past five years. Opposite to such population emigration trend is the continuous 10% to 20% annual growth rate of home price in these areas. On the contrary, Atlanta has been amongst the cities with fastest population growth. It is estimated by the Atlanta Regional Commission that more than 2.5 million people will relocate to Atlanta in the next twenty five years. The population explosion will no doubt have a positive effect on Atlanta real estate market.

This positive trend is visible from a number of commercial and residential transactions we have handled recently. More and more capitals flow into Atlanta from other states and even foreign countries, inclusive of Europe, Korea, Singapore, Mainland China, Taiwan and Hong Kong. On the other hand, the tendency of larger individual investment also implies an increasing demand for commercial property.

The hiking interest rate came into effect to slow down the property demand, whereas it does not cool down investor’s passion on Atlanta’s real estate market. Some investors point out that you don’t need to worry about your investment as long as you invest in property in Atlanta.

The legal risk must also be addressed along with the fast growth in property market. The Investors should pay more attention to the increasing fraud and dispute in property transactions, especially in the case of mortgage loan fraud. Therefore, seeking help from a professional and responsible real estate broker, loan broker and attorney minimize risk and avoid unnecessary loss in your investment.

This article is only for your reference. Please do not apply mechanically to any exact cases. You are welcome to consult our attorneys at Liu & Associates, P.C. For contact information, please click here.