Is Atlanta’s housing market overvalued?
If you are looking to invest in a home, a new study of the top 100 housing markets in the nation shows metro Atlanta has the second most overvalued market in the nation.
ATLANTA – The metro Atlanta area is the second most overpriced housing market in the nation, according to a newly released study. In June, the median price for a home on the market was just over $430,000. According to a report from Florida Atlantic University, housing premiums in the area are 40.4%.
FAU Housing economist Ken H. Johnson, Ph.D., says the report uses Zillow to model where home values are and compare them to what they actually are. He says population growth in metro Atlanta is driving up prices due to supply and demand. It has created, according to the study, overvalued property.
“I don’t think you will see a bust,” said Johnson. “What you are going to see in Atlanta, and other places, is we are going to have a flat period in terms of property appreciation.”
Johnson says eventually, appreciation will be minimal or slightly negative.
“A home you bought today, five years from now, will sell for roughly the same price,” predicts Johnson.
Johnson says the more immediate concern is affordable homeownership. A prospective Douglas County homebuyer says she looks at it on the bright side.
“I haven’t sold the current house,” said Pam Ensley. “I’m going to get a good return on my investment and more buying power.”
Ensley’s realtor, Amy McCoy, says pushing for equitable economic development investments in communities and homeowners staying on top of elected leaders is a key component to maintaining the value of your housing investment.
“Being an educated homeowner, going to community meetings so that you are aware of what’s happening in your community to make sure the value for your home is maintained and sustainable,” said McCoy.
In last year’s report, Atlanta was number one on the most overvalued housing list.
