On this week’s episode of the Wiser Roundtable Podcast, Casey and Matthews are joined by guest, Tom Townsend. Tom is a part of Townsend Realty Group, a Keller Williams Realty Partner. They discuss the current real estate market and whether there is a looming real estate crash.
Casey begins by introducing today’s guest, Tom Townsend of Townsend Realty Group, a Keller Williams Realty Partner. In 2021, there is so much demand in the real estate market that buyers are competing against multiple other buyers when making an offer on a home. Homes are selling at 10-15% above asking price currently. Although the market is hot, you still want to price your home at fair market value. In times like this, the market will naturally bring the price of your home up through competition in the market.
The real estate market today is very healthy from a financial stability standpoint, which is why it differs from the market back in 2007-2008. Currently, Real estate is not at the center of our economy, it is an outlier.
We are seeing an increase in demand, but not necessarily a decrease in supply. The supply of homes in 2021 compared to 2019 is stagnant. The difference is that most homes are selling before they even get to hit the market. This is happening due to supply, low interest rates, the pandemic, and lack of labor to build homes. There is also an influx of people moving to Georgia and other southern states. Atlanta is very affordable compared to other similar metro areas across the country.
It is hard to say when the real estate market will crash, or if it even will. His prediction is that it will likely just plateau. If the market continues at this pace, the values will continue to climb. Over the last twelve months in metro Atlanta, there has been an 18.5% increase in home values. Unfortunately, some people are getting priced out of the market and are forced to rent instead of buy. Due to this, many people are also leaving the city to buy in the the suburbs.
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