Real estate agents, who deal directly with buyers and sellers, are in a position to know firsthand what’s on the minds of both groups when it comes to home sales.
A new report from Redfin, the real estate brokerage, found buyers in the fourth quarter continued to be frustrated by the slim pickings, were willing to pay more than a buyer’s asking price and were willing to settle for less house if it meant winning a bid.
Redfin’s national survey of 468 agents, including some in metro Atlanta, provides insight into a housing market that continues to experience tightening inventories, rising home prices and mortgage rates that continued to trend upward.
Most of the 468 agents surveyed, including some in metro Atlanta, thought it was a good time to buy a home (56 percent versus 55 percent in the third quarter) even if 63 percent believed sellers had “unrealistic expectations” about the value of their properties.
The biggest challenge, according to 87 percent of agents, was the limited inventory and clients having to compete against other bidders for a house.
Ennis Antoine, associate broker at Better Homes and Garden Real Estate Metro Brokers, said he’s advising clients to be patient.
“You have to understand there’s not a lot of inventory and when you find the home you want you have to give your best offer initially because there’s no haggling,” Antoine said. “You can’t bargain down.” He said some buyers are settling for less house or a home that is older than preferred.
According to Metrostudy, the Atlanta area has a four-month supply of homes on the market, compared with the six- to seven-month supply that is considered normal.
“We’ve had an undersupply for quite a while,” said Eugene James, Metrostudy’s Atlanta regional director. He said he expects listings to start picking up in the second quarter and as homeowners see the return of more equity.
The Redfin survey also found agents were concerned that rising interest rates would limit home sales, with 39 percent believing that if rates exceeded 5.5 percent, sales and home price growth would suffer. Other agents put the threshold at 6 percent.
The average 30-year fixed-rate mortgage in metro Atlanta rose this week to 4.63 percent from 4.54 percent the previous week, according to weekly data from Bankrate. Local rates were slowly catching up with the national average, which was 4.69 percent. The average 30-year rate was around 3.76 percent this time last year.
