‘The Only Thing That Is Constant Is Change ‘. Heraclitus said that and he died in 475 BC. So when things stay the same for awhile it can seem like the norm. We have been in a period of historically low interest rates. For a few years now I have been listening to my lenders and reading that rates were going to go up. Well, here we go. Rates have increased half a % since the start of the summer. Just as rates were lowered to spur the economy on, they are increased as the economy grows. Don’t panic. We are still well below what in the big picture (the past 100 years) is actually the average- 8%.
If you are on the fence about purchasing, I would say the time is NOW to jump off. If you are waiting on the next Buyers Market in Atlanta, that prediction isn’t until 2020. Rates will continue to climb and a Buyers Market will merely stabilize prices, not particularly drop them any. Rising rates and rising prices mean the sooner you enter the market, the better off you will be.
Where once the Foreclosure market saw a large percentage of homes being sold below $100,000, in September 2018 only 3.8% of the entire Metro Atlanta market closed below $100,000. This is putting added pressure on both affordability and the investor/renovator market.