Georgia Home Values are Back On Track as Sales Pace Continues Brisk
Is the current pace of home sales sustainable?
This is a question real estate professionals have been hearing a lot lately. Many people observing what seems to echo the run-up in home prices that took place in the early 2000s are worried that we’re selling so many houses in Georgia right now we can’t possibly keep up with this pace.
How do they come to that conclusion?
Looking back over the last sixteen years, they remember that prior to the crash, home sales took off at a similar pace in 2003, 2004, and 2005.
But what happens when we look at the bigger picture?
Now is a Great Time to Sell
For instance, take a look at this chart of national home sales. If you look at the three years right before, 2000, 2001, 2002, they are very reflective of what’s taking place in 2015, 2016, and today.
You can see how it appears. Are we heading toward another dangerous uptick? And more importantly, are we going to come crashing down again? This worrisome question has some industry insiders anxious.
Real Estate is Still a Smart Investment
Before assuming the worst, let’s look a little bit closer and back a bit farther. What we can see in the next chart is going back to 1990 through 1999, home sales increased as expected almost every single year. They either remained the same or rose a little higher.
Why did that happen? Because that is what real estate values have traditionally done. That’s what has always made investing in a home of your own a smart move for wealth-building.
That's also why home ownership has long been a big part of the American Dream. And as populations increase, the need for housing also increases and naturally drives home values up. It’s always been that way.
Yes, from 2000 to 2005 prices inflated too quickly. But, if we take out those few years where they spiked up and came tumbling down, we can see that compared to where we ended in 1999, before the bubble and the crash, and where we are now, going up, the trajectory looks about the same.
That’s a healthy real estate market. That’s exactly where we should be.
If you are looking to buy or sell a home in Georgia, the Best Atlanta team and our vast network of Georgia associates can help you get the job done with maximum results and minimum stress. Contact us today.
(Charts courtesy Keeping Current Matters / NAR)