Welcome to Real Estate Backstory, your go-to for a weekly update on real estate news, changes, and trends specifically focused on the Atlanta area and its surrounding markets. In this episode, we bring you a wide range of topics that are shaping the real estate landscape. The following is a synopsis of the latest episode of “The Real Estate Backstory.” You can watch the video in its entirety below.
In this market update, we bring you important information on various aspects of the real estate industry. We start with a scam warning regarding vacant lots, followed by an update on the regulations surrounding short-term rentals. We then discuss the recent trend in mortgage rates and highlight the factors that influence buyers’ design preferences. Additionally, we address the tight inventory situation, the increase in home sales, and the need for more housing. Finally, we explore the affordability of homes based on median income levels.
Scam Warning Regarding Vacant Lots
A new scam involving vacant lots has come to light recently, prompting us to issue a warning. Scammers are aggressively offering vacant lots for sale at below-market prices, with a quick closing and cash transactions. They operate remotely, using email and phone communication, and often claim to have emergencies requiring immediate cash. These scammers use fake IDs for mail-away closings, but the IDs are usually poorly photocopied. It is crucial to exercise caution, close deals with reputable attorneys, and perform due diligence to avoid falling victim to such scams.
Regulations on Short-Term Rentals
Dallas has joined the growing list of cities implementing stricter regulations on short-term rentals, such as Airbnb and VRBO. This trend is not limited to Dallas and Atlanta; many municipalities are introducing rules and regulations for short-term rentals. As a result, managing such rentals has become more challenging and time-consuming for property owners. Consequently, some property owners may consider selling their properties instead of dealing with the hassles of short-term rentals. This presents an opportunity for potential buyers to explore purchasing properties from owners who are open to selling.
Mortgage Rates Update
Mortgage rates have shown a positive trend by decreasing for the third consecutive week. Although the decline may not be as fast as desired, any decrease is beneficial for the real estate market. This update provides hope for potential buyers looking to secure a mortgage at a favorable rate.
Buyers’ Design Preferences
A recent survey by Zillow revealed that bathrooms are the top design preference for buyers, followed by kitchens. Other important features include new floors, appliances, well-maintained yards, and indications of pride of ownership in the front and backyards. Subway tiles, moody accent walls, shiplap, barn doors, and mixed metal finishes in kitchens and bathrooms are among the design elements that attract buyers. It is important to note that personal taste and regional preferences may vary.
Inventory Challenges
The real estate market is currently experiencing a severe shortage of inventory. The number of homes available for sale is at its lowest level ever recorded. This shortage is not limited to the current year; it has been a persistent issue for several years. The demand for homes, especially from millennials and Gen Z buyers, is high, resulting in bidding wars for nearly half of the home offers. New listings have decreased by 25%, exacerbating the already limited inventory situation. The lack of available homes is now a greater challenge than interest rates, emphasizing the urgent need for more housing supply.
Affordability and Homeownership
Despite the tight inventory and rising home prices, there is an encouraging increase in the homeownership rate for families with below median incomes. This suggests that more individuals and families with lower incomes are successfully purchasing homes. However, the income needed to afford the average home in the Atlanta metro area is around $100,000 per year. This information serves as a reference point for buyers, particularly those with incomes below the median, who may require assistance from down payment programs or other resources to overcome affordability challenges.
In conclusion, the real estate market presents various challenges and opportunities. It is crucial to stay vigilant against scams targeting vacant lots and be aware of the evolving regulations for short-term.
Watch the entire video for more information here:
