Are You Prepared for Georgia's 2021 Real Estate Market?
When COVID-19 made its way to Georgia, local economists were wary, but the Georgia real estate industry has remained strong; buyers are more confident than even before the onset of shutdowns. In 2021, markets across the state are expected to continue that upward trend. With the demand to spread out steadily increasing, novel work-remote positions, low-interest rates, and rapidly rising home sale prices, real estate agents all across Georgia should gear up for another busy year of sales.
2021 Georgia Real Estate Outlook: Hot
In December of 2020, the average home in the Peach State was priced at $218,609, a 7.3% increase year-over-year. That figure is expected to increase dramatically as Zillow predicts the market will accelerate and rise 10.1% within the next year. Rising prices and continued demand, despite 2020’s challenges and changes, are a promising sign that 2021 could be very profitable for agents and sellers alike.
Additionally, home sales across Georgia grew 16.5% year-over-year in November 2020. Active listings also fell a significant 81.9% from 21,896 to 12,040 days during that same period. Thanks to record low-interest rates, continued strong demand, and lower-than-usual inventory, Georgia will likely be a seller’s market with high prices and bidding wars as 2021 unfolds.
Rent prices, on the other hand, have increased 6.2% year-over-year statewide but still remain 12.4% lower than the rest of the country. Meanwhile, a total of 1.0% of Georgia mortgages were reported as delinquent in June 2020. So, while new transactions boom and more people seek out the sweetness of the Peach State, current homeowners continue to thrive as well.
2020 Georgia Real Estate Market Data
|Zillow Home Value Index||$218,609|
|1-Year Change on Home Values||+7.3%|
|1-Year Change on Rent Prices||+2.2%|
|Homes With Negative Equity||2.6%|
|Delinquent on Mortgages||1.0%|
|Buyer’s or Seller’s Market||Seller’s|
Market Insights for Georgia
In November 2020, the Bureau of Labor Statistics reported that Georgia’s unemployment rate is 5.7%, down from 7.6% in July. As it sits, Georgia is well below the national unemployment rate of 6.9%, and that difference is likely to continue as tourism, hospitality, and retail markets around the state return to normalcy. Economic activity often correlates with growth in the real estate industry, and narrowing unemployment rates along with low-interest rates are a positive sign for agents in the year ahead.
The Peach State also sports some other attractive features that could positively impact its market. Georgia is a hot spot and economic hub for those with new work-remote positions looking to escape the high taxes, hustle and bustle, and harsh winters of large northern and northeastern cities. Expect inventory to remain low, sale prices to stay high, and bidding wars to ensue. Georgia real estate, while it’s still a great investment that affords homeowners a high quality of life, will almost certainly play out to be a strong seller’s market in 2021.
With a strong 2021 economic rebound predicted, Georgia real estate agents will need to be at the top of their game and prepare clients’ expectations for low-inventory-driven bidding wars. However, because more buyers are looking to make Georgia their permanent residence, they are more likely willing to pay more and could push the market to new heights. With a wealth of opportunities on the horizon there has never been a better time to help your fellow Georgians find their perfect property.
Ready to Get Moving on Your Real Estate Career in Georgia?
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