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2014 East Cobb/Smyrna Real Estate Outlook

The market is now approaching 2006 values.

East Cobb home for sale. Credit: www.LesaBell.com
East Cobb home for sale. Credit: www.LesaBell.com
By Lesa Bell

Expect another strong spring market in 2014. Buckhead, Brookhaven, Sandy Springs, Vinings, and East Cobb home values at 2013 year-end were up 7-9% over 2012. However, sellers expectations for an equally high 2014 appreciation numbers will need to be tempered as most economists and industry research professionals believe 3-4% annual appreciation is the new normal through 2018.

Zillow Chief Economist Dr. Stan Humphries believes that rising mortgage rates, reduced investor demand and slowly rising inventory will all contribute to the slowdown of appreciation. With continued questions about the role of quantitative easing, job growth which has yet to replace the quality of jobs lost in the recession, and fluctuating uncertainty in Europe and China, buyers and seller will remain watchful.

The market is now approaching 2006 values. All in all, the outlook for appreciation is good. The spring market will be very active with the highest concentration of activity in the $500-800 range. The supply of entry-level homes remains tight and loosens as you ascend the price ladder.

Lesa Bell, Harry Norman, Realtors
www.LesaBell.com
www.LoveNowSellLater.com

Chris P. February 19, 2014 at 09:52 AM
Once again we're failing to learn the lessons of history. Stagnant incomes don't support much demand for homes in the $500-800K range, at least not without funny-money financing games. Most people do not have the sustained income over the life of the 30 year mortgage to stay in those homes without risking foreclosure due to income loss or a life event (divorce, illness.) I'm also seeing signs also of overbuilding again. Some marginal developments are being revived that will probably go bust in 1-3 years time. The same folks that told you there was no housing bubble in 2006 are the ones telling you that skies look clear now. Be careful out there.

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