There are various stresses in buying a new home. Obstacles such as moving costs and repairs are almost inevitable, but some find the hardest obstacle to be finding the perfect house to call home. In Georgia’s current housing market, it has become increasingly difficult to find an affordable home. Georgia’s 2023 market is quite unusual with high mortgage rates, low sales, and low inventory. Over the past couple of years, the Peach State has become the home of many migrants. The state’s population has increased by more than 1.7 percent (Special Report). With more demand in the past years, prices have increased by approximately 74% which explains the common frustrations through buyers.
One of the biggest frustrations for buyers is the lasting effects of debt. The market has drastically changed, in response, mortgages have also altered. Most people do not purchase homes with cash, but instead require loans in order to purchase property. These loans are heavily impacted by the prevailing interest rate or the price of debt. In simple terms, the prevailing interest rate is the current rate on mortgages, the money borrowed when buying a house with interest. In the past couple of years, this rate has drastically increased, which makes buying unappealing and difficult.
Another obstacle would be the lack of options on the market. Currently, Georgia’s market is a seller’s market. While there are many positives, such as economic growth, the main negative is the limitation on the amount of homes. When demand is high and inventory is low, prices and competition rise when buying property. This factor has a huge impact on home affordability which makes buying a home very unattractive and frustrating. Limited houses translate into a harder time finding the perfect property with specific needs and preferences. Imagine committing and buying a home that did not meet the expectation. Another negative factor of a seller’s market is the inability to negotiate. Buyer’s know the demand for property and the amount of competition, so they will usually not come to a compromise on the price.
“With more dollars and not enough property, the competition rises and prices follow.”
The housing market is also heavily influenced by the state of the economy. Mr. Oswald is the AP Macroeconomics teacher at Denmark High School and shares how the macroeconomy has affected the broader housing market, “The biggest change in the macroeconomy is the expansion of the money supply.” Oswald explains that there is more money circulating in the economy. With more dollars and not enough property, the competition rises and prices follow.
The future of Georgia’s market is unpredictable and can change at any time. But if current trends continue, the median sale price will continue to rise. Currently, the median price is $365,000 and predictions say this will increase due to low inventory (Georgia Real Estate Market: Will Sellers Dominate the Market in 2024?). So, whether it’s renting, buying, or even waiting, residents of the Peach State need to be aware of what the housing market has in store.
