Jottings from Josephine
Mid-May 2025 | Market Update
The Good, the Bad, and the Ugly: How Today’s Economy Impacts Real Estate
As headlines swirl around tariffs, tech, and trade wars, it’s easy to lose sight of what this all means for the real estate market—locally and nationally. Here’s my straight-talk breakdown of where we are, and where we may be headed.
THE GOOD
• Q1 Earnings Surprised to the Upside
Wall Street rallied as earnings jumped 13.6% year-over-year, offering some stability in an otherwise rocky landscape.
• Tariff Pause Creates Temporary Calm
The U.S. and China agreed to a 90-day reduction in tariffs, cooling some inflationary pressure and bringing buyers back, at least for now.
• Atlanta’s Migration Magnet
Georgia’s capital continues to attract remote workers, corporations, and families fleeing high-tax states. This ongoing migration supports property values from Buckhead to Brookhaven and beyond.
• Tech Investments Spark Regional Growth
AI and automation are fueling job creation in innovation corridors—some of which run right through Metro Atlanta. Long-term, this spells strong housing demand.
THE BAD
• Affordability Is Still a Crisis
Material costs remain elevated thanks to tariff pressure, keeping new construction prices out of reach for many first-time buyers.
• Sellers Sitting Out
With most homeowners locked into ultra-low mortgage rates, listing activity remains historically low. That keeps inventory tight and bidding wars alive in some segments.
• Luxury Market Cools in Buckhead & Midtown
High-end buyers are pausing, watching the markets—and asking for value. Premium listings need to shine brighter than ever to stand out.
THE UGLY
• Condos Facing Longer Days on Market
The urban condo market is softening, especially in Midtown and Westside. Inventory has crept up, and buyers are cautious in high-density areas.
• Investor Fatigue
Wall Street volatility has trickled into real estate. Institutional buyers are backing off, especially in mid-tier and short-term rental markets.
• Insurance Costs on the Rise
Severe weather projections and global instability are increasing premiums in parts of Georgia—squeezing affordability even further.
LOOKING AHEAD: STRATEGY IS EVERYTHING
Real estate remains a long-term hedge against uncertainty—but timing, financing, and representation matter more than ever.
Buyers: Consider locking in rates before more volatility.
Sellers: You still hold leverage in low-inventory markets—but pricing and presentation are critical.
Investors: Watch for opportunity in condos and transitional neighborhoods with high rental potential.
The path may not be smooth, but Atlanta real estate is still solid ground for those who move wisely.
