Negative Home Equity in Atlanta Remains a Problem

Negative home equity in Atlanta remains a major reason for the shortage of housing inventory. Simply put, homeowners cannot afford to sell their homes and/or they lack the equity to comfortably sell and cover the costs of the transaction (negative equity and effective negative equity). Needless to say this impacts down payments, reserves and even the ability to cover things like moving costs.

Nationwide, the negative equity numbers for home owners has improved falling from 13.4 percent in 2015 to 10.9 in 2016. This is a moving target however; rising prices are only welcomed when buyers are able to buy. As markets tighten, prices could fall back and the cycle repeat itself. The Metro Atlanta market – despite price improvements – is in the very top tier of national areas with effective negative equity.

13% of Atlanta home owners are in negative equity situations, the total value is estimated to be $10.8 billion. Effective negative equity is much higher – an estimated 127,592 homes or a rate of 30.3%. In other words, nearly a third of metro Atlanta homeowners are unable to list their homes because they cannot afford the costs involved.

Slide this map to the area desired and scroll for county data showing the current negative and effective negative home owner equity.

There are many parts to a real estate market and the influences are always changing. Keep in mind that “equity” is a somewhat nebulous term, disposable income to execute a move goes hand in hand with equity. There is no “one” key to a healthy market but certainly the foundation is the economy as that tends to have the most influence on most people. HMT consistently tracks market conditions in over twenty parts of the greater “Atlanta market”, have a look.The full report on this is available at Zillow.

The Hank Miller Team Advantage

We provide confidence to our clients buying and selling homes in the North Atlanta real estate market. Our unmatched sales and appraisal experience, relentless drive and ability to manage transactions allow our clients to make sound, decisive real estate decisions. We offer full time, full service, personal, hands-on attention and concierge level service every step of the way for perhaps the most important financial decision you’ll make.

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