1. Millenials will start buying. CoreLogic states that better employment and higher income for Millenials will mean more will enter the real estate market as first time buyers. This definitely will influence Atlanta’s intown market as more Millenials move in coupled with the fact that Atlanta is relatively cheap and still affordable for first time buyers.
2. Oil price drops will benefit housing. Outside of making people feel better about the economy and their wallet I don’t see this affecting Atlanta. CoreLogic specifically refers to energy costs in the home but Georgia is already a low cost energy state so I don’t see this affecting us much.
3. Home price growth will remain muted. Here at homesinatlanta we’re in agreement with this one. Home prices have increased but wage increases aren’t keeping up. House prices can’t continue to beat income growth so we’ll see slightly higher prices but they’ll increase at a slower rate than in 2014.
4. Houston will be the most interesting housing market to watch. This obviously isn’t about Atlanta but it will be interesting to watch Houston because it has a growing population (good) but lower oil prices (bad). We think the most interesting market to watch will be Atlanta!
5. Housing demand will jump. This is their most interesting trend. A couple of data points. Mortgage rates aren’t expected to rise and sales are expected to rise 9% over 2015. We’ll keep a close eye on this. If sales are going to increase where will the extra inventory come from to keep prices down.