The challenges and opportunities of buying Atlanta homes in today’s market are different than they were in the past, including the recent past. According to money.CNN.com, homes are selling 19% faster than they were one year ago. The speed with which homes are selling is due to two factors.
First, prices are low, as are mortgage rates.
Second, there are not enough homes on the market for all potential buyers.
Therefore, if you are considering buying Atlanta homes in today’s market, you must act quickly. Even when you act quickly, you must be aware that you might not move in, depending on your offer.
Buying Atlanta Homes is More Difficult Today
It is more difficult today for middle class Americans to buy the first or second home they make an offer on. Investors with cash receive favor at multiple levels of the process over people with traditional loans. Federal Housing Authority(FHA) loans give first time home buyers the opportunity to buy a house with a low down payment.
People who finance through the FHA program also experience difficulty in buying a home if investors with cash also want the property, and people with traditional loans might be favored over them as well. The more cash you have for a down payment, the more likely it is that your bid will win the first time you make an offer. More cash as a down payment is a strategy that has proven successful when buying Atlanta homes, even more successful than offering to pay a higher price for the homes.
How can middle class Americans achieve the dream of home ownership if they’re competing in a process that favors cash? A 20% down payment traditionally qualified someone for home ownership. In order to be competitive when buying Atlanta homes, some experts recommend a 35% down payment. It is not impossible for people with a low down payment to purchase a home. They should simply expect the duration of the process to be longer.
The risk involved with buying Atlanta homes depends entirely on the neighborhoods where you’re looking. After years of declining prices, the market shows signs that it has bottomed. However, when buying Atlanta homes, you should bear in mind that it is possible for prices to drop again after you buy. Just remember, you’re not looking for the best price, you’re looking for the best home.
Acting quickly and taking advantage of low prices and mortgage rates can be tempting, but requires some soul-searching. If you think you might move again in two years, the costs associated with buying Atlanta homes will not prove home ownership to be less expensive than renting. Do you want to live in this community in the future? If your answer is “yes” – this is where you want to raise your family, raise a garden, live closer to your aging parents – home ownership is, without a doubt, an investment you should actively seek.
For more tips on buying Atlanta homes, see our Atlanta Home Buying Tips section under Atlanta Real Estate Categories to the right.
