Frank Norton Jr. presented his 36th annual real estate forecast at Lanier Tech in Gainesville, revealing his predictions for the Northeast Georgia real estate market in the coming year. The forecast, titled Annual Norton Agency real estate forecast predicts lower interest rates by mid-year, covered various aspects of the real estate market, including interest rates, supply and demand, and the impact of the gig economy.
Norton highlighted the fluctuations seen in office space, lending, and interest rates in the post-COVID era, referring to it as The Big Squeeze. According to Norton’s report, 13% of homeowners with mortgages have an interest rate of 3% or lower, while 40% have rates between 3% and 4%. The rapid change in interest rates, from 3% in January 2022 to 7% in June 2023, caused a significant pause in the mortgage industry. However, Norton projected that interest rates would continue to decline and reach a 50-year average by the second or third quarter of this year.
Supply and demand in the housing market were also discussed in the forecast, with Norton pointing out that there is currently high demand but a shortage of supply. He emphasized the need for increased housing density to create new inventory and reduce construction costs. However, some municipalities are hesitant to add new housing, even as employers have a high demand for laborers’ housing.
Norton addressed the impact of social media and information overload on the investor market, including the housing sector. He described the current age as one of never-ending crisis due to excessive exposure to social media and global news consumption.
The Georgia unemployment rate, which is currently at 3.4% and ranked 30th in the nation, was also highlighted. Norton noted a disconnect between communities’ desire for development and their resistance to increased housing density to support that development.
The Norton Agency declared that despite the rise in housing costs by 69% over the past decade, with median incomes only increasing by 22%, the possibility of achieving The American Dream is still feasible. However, challenges persist.
Industrial real estate was identified as a market on the rise, with high demand labeled as white hot. The forecast attributed this surge to a shift in attitude from a just ran out to a just in case mindset, especially in terms of shipping parts to various locations in Georgia and across the nation. This change in approach has led to an increased demand for industrial business spaces.
The forecast also addressed the rise of the gig economy and the feeling of drowning experienced in the business, advertising, government bureaucracy, and real estate sectors.
Overall, the Norton Agency’s real estate forecast provided valuable insights into various aspects of the Northeast Georgia real estate market. As interest rates are predicted to decrease, supply and demand dynamics continue to evolve, and the industrial sector experiences growth, buyers and investors can navigate the market with greater understanding and confidence.
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