Atlanta Agent: What's the Future of Real Estate in 2022?
Trying to predict what will happen in the residential real estate market in 2022 is a bit like trying to forecast the weather months in advance, but while the future of home sales and development has become increasingly unforeseeable, real estate professionals continue the work of advocating for their clients.
We spoke with Atlanta real estate leaders to learn what they see coming down the road for the industry. While buyer preferences for more space — both inside and outside the home — remain and supply chain issues continue to stifle home construction efforts, other factors, such as the potential increase in interest rates, are expected to change the game in 2022. Check out our Q&A with some of Atlanta’s top players to learn more about what they’re planning for over the next 12 months.
* Kelly Allison, senior vice president – southeast, New American Funding
* Massoud Atallah, regional vice president, Coldwell Banker Realty
* Brian Berman, owner, Mortgage Atlanta
* Jeremy Collett, executive director of capital markets, Guaranteed Rate
* Todd Emerson, general manager, Harry Norman, Realtors
* DeAnn Golden, regional manager and senior vice president, Berkshire Hathaway HomeServices Georgia Properties
* Christa Huffstickler, founder and CEO, Engel & Völkers Atlanta
* Kristen Jones, broker-owner, RE/MAX Around Atlanta Realty
* Sherwin Loudermilk, founder and president, Loudermilk Homes
* Shannon Wilmot, general sales manager, RE/MAX Tru
An excerpt is below:
How will you add inventory in 2022?
Loudermilk: In recent years, we have reduced the number of spec homes we build in favor of primarily custom homes because families and high net worth individuals want their dream home to be exactly the way they want it, with features like home movie theaters or double home offices that support their unique lifestyle and needs.
That said, we do usually start a few spec homes each year and they often convert to custom after they come out of the ground. It’s important to have some availability for executives or families that are relocating and need a house quickly.
I’m confident that 2022 will be even busier for us than 2021, and this has been the busiest year in our company’s history.
How is your company responding to low inventory?
Loudermilk: Low inventory is an issue, and it makes the available homes that we do have even more attractive and hard to come by. We’ve been selling homes faster, and demand is so strong that we’ve had to do a short-term moratorium on new home contracts to give our team a chance to catch up.
How will you deal with supply chain issues next year? Will this continue to be an issue for builders?
Loudermilk: Supply chain issues continue to be one of our largest challenges. Certain items like stoves, refrigerators and exterior paint are simply not available sometimes. We’ve had to drive from Atlanta to Alabama for paint, and we’ve switched brands just because another product was available. We’ve bought temporary stoves, refrigerators and faucets so the buyers can take occupancy and move in, and then we’ll come back in a few months and swap out the items that had been on backorder.
Our rigorous pre-construction process includes making all selections before we break ground, so we can usually order materials, cabinets, light fixtures, tile and flooring well ahead of time. We also bought a couple of 35-foot metal shipping containers for extra temporary storage so we can pre-order more materials.
How important will agents be to your business in 2022?
Loudermilk: Realtors are incredibly important and valuable business partners for Loudermilk Homes, and they play a major role in our success. The Realtors we work with help communicate our commitment to quality and our 9-Step “Process to Perfection” that makes it easy and fun to work with us. Agents can also be proactive and enhance our transparency with buyers when there are unexpected issues, like supply chain hiccups that cause schedule delays or rising prices for things like lumber or cabinets.
What impact will environmental concerns have on the Atlanta real estate market in 2022?
Loudermilk: Homebuyers care deeply about the environmental impact of construction, from the materials and energy used to build their home and the energy efficiency of major systems. We apply the concepts of progressive value engineering to every home we build because it reduces costs and optimizes the use of materials. For example, we stack walls to optimize lumber and engineered beams, and we shorten HVAC runs so the furnace and air conditioning are efficient. We also situate the house on the lot and place windows and doors in a way that takes advantage of the natural sun patterns and shade. We also insist on keeping a clean job site because it minimizes waste and can save thousands of dollars on each project.
Will the Atlanta metro area continue to be a hotbed of activity for new construction in 2022? Why or why not?
Loudermilk: Absolutely — metro Atlanta is one of the most attractive places in the country to raise families, advance your career, and have a great quality of life. It’s still much more affordable than other cities on the East Coast or West Coast, and there are many major Fortune 2000 employers, an active startup and entrepreneurial ecosystem, terrific schools, excellent restaurants and retail, mild weather, and countless outdoor activities and recreational things to do. We think 2022 is going to be a new record year for Loudermilk Homes!
