Expect Multiple Offers and Hyper Appreciation This Spring

Transcript From Video

Today I'm going to show you why you should expect multiple offers and super high appreciation going into the Spring and the Summer real estate market at least here in Metro Atlanta. What I'm going to show you is a chart that has an activity index and an absorption rate. The activity index is a leading indicator and the absorption rate is a lagging indicator. It uses sold homes in the past to determine what's going to happen in the future, whereas the activity index shows pending homes versus the active listing so it gives you an idea of what's going to happen in the future. When you look at a long-term chart like this one that goes back 5-6 years, you'll see consistently that the activity index predicts what's going to happen about 60 days in advance, and, if I go ahead and I zoom in on the end of this you'll see that the activity index is falling out of the sky very quickly.

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This means that the absorption rate is going to follow and that means that the supply of homes is very quickly going to fall under 3, maybe down to 2 again and it's going to mean hyper-appreciation and it's going to mean multiple offer terms that favor sellers - all the things that we've seen over the past few years. Interest rates have not fallen and don't look like they're going to fall. So, if you're on the sidelines waiting for the interest rates to drop you're going to miss out on so much appreciation that it's going to offset your monthly cost that you would have saved by a lower interest rate and you will have lost all of the cash and equity that you would have gained if you just go ahead and buy the home now. It makes a lot more sense to get in the market now than it does to wait.

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Listing information last updated on April 24, 2024 at 6:00 PM EST.

Ryan Ward, Broker
Cell: 404-630-3187

Ryan Ward is the Managing Broker and Owner of Premier Atlanta Real Estate and the School Director of Thrive Real Estate Academy.

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