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Tue June 24, 2014
Atlanta Metro Area Sees Monthly Home Price Gains
Atlanta was among the few U.S. cities with strong, home price growth in April.
Today’s S&P/Case-Shiller report shows the rate of home price gains lowered. The 10-City and 20-City Composites annual gains are 10.8 percent, which is down from previous months.
However, metro Atlanta had a 2 percent monthly increase in April.
RealtyTrac’s Vice President Daren Blomquist explained investors that purchase homes to rent are contributing to Atlanta’s faster growth.
“They’re creating a new market of demand that was never around before competing against the regular buyers and the regular investors and that’s helping," Blomquist said. "It becomes, you know, then the law of supply and demand kicks in.”
Blomquist said this new information is both good news and bad news for homebuyers.
“Specifically for Atlanta buyers, there’s a lot of competition in the market, and its driving prices up and it’s very competitive," he said. "So, it is somewhat of a tough market to buy in and they’re going to have to be patient if they’re looking to buy a home.”
Blomquist said the good news is the housing market is beginning to level off.
Although national rates of home price gains lowered, S&P Dow Jones indices senior director Craig Lazzara said this deceleration is a good thing.
"You can't really sustain 15 percent per year forever," Lazzara explained. "If you do that for too long, you end up back in a bubble. The fact that the rate of change began to moderate is to me a good thing. It tells me the recovery is healthy."