Vol. 1 | Issue 1 | January 2019
On the surface, it may seem that the economy is going downhill quick, but if you dig a little bit deeper, look at the nonfarm payroll and listen to the rhetoric of current Federal Reserve Chair, Jerome Powell, you will find that we are still sitting on solid ground.
The current Federal Reserve Chairman Jerome Powell was in Atlanta today. His words, "I am pleased to say that our economy is now close to both of those objectives. The unemployment rate is 3.7 percent, a 49-year low, and many other measures of labor market strength are at or near historic bests. Inflation is near our 2 percent target. The economy is growing at an annual rate of about 3 percent, well above most estimates of its longer-run trend" This was right after nonfarm payroll shattered estimates and surged to 312,000 in December.
Let’s look a few numbers to get a snapshot of the current state of our economy:
What about Atlanta Real Estate:
What do these numbers mean?
The greater Atlanta market is sitting on a supply of homes that is less than three months due to the increase in demand from buyers and overall lack of supply. If you are selling that means you will typically have the opportunity to sell your home quickly based on supply in the market. (Reach out directly to me for more information based on your neighborhood / City) What I’m personally seeing is areas that historically have had a low transaction price are lifting, a trend which is still set to continue; this is putting upward pressure on the median home prices.
Buyers, don’t get discouraged. Interest rates have dropped nearly a half percent in a period of less than three months. This is great news, there is plenty of inventory, and we are seeing fewer bidding wars which allows you to negotiate based on your terms.
Here is an example to show you how much purchasing power you have gained in a three-month period.
$1,800 Payment (20% down) Loan amount is $356,000
Three months ago, that would get you a home worth $420,000 at 5%. Now you can purchase a home that is $445,000 at 4.5%, that’s an increase in purchasing power of 5.95% in less than 3 months; you are getting in at a great time with the ability to have more control over price and terms.