The Real Estate Digest

April 01, 2025

Good Morning, It’s Tuesday, April 1st. 

Why did the real estate agent break up with the mortgage broker? Because he found her interest rate too high!

In This Week’s Edition:

HOME SALES
Sales are up for March

Insight: Sales in both Clarke and Oconee County are starting to pick up as Spring hits. While closed homes, are lower at the moment, pending sales are higher in both Clarke and Oconee County, showing the increase in homebuyers and heating up of the market.

SPOTLIGHT
Investment Property of the Week

This charming home, located just off Baxter Street, is the perfect opportunity for an investment property. With its unbeatable location, tenants will enjoy easy access to everything Athens has to offer, including Downtown, the UGA campus, Five Points, and the ACC bus route. Plus, it's within walking distance of shops on Baxter and the Beechwood Shopping Center.

Priced affordably with a well-maintained interior, this property is a fantastic option for first-time investors. Minimal upfront costs after purchase make it an easy entry into the rental market. Don’t miss out on this prime investment opportunity!

This is for informational purposes only and should not be considered financial or investment advice. Please conduct your own research and consult with a professional before making any investment decisions.

MARKET CONDITIONS
Inventory is Growing

Insight: Inventory has grown significantly over the past month in both Clarke and Oconee County. Inventory has slowly been growing over the past few months, leading it to reach these levels. The days on the market has also dropped in both counties, which is the result of the market heading up.

NATIONAL
Weekly Noteworthy News

Homeowners Hold Over 34 Trillion in Equity, But Mortgage Debt is Rising

Athens homeowners see strong home equity gains despite market shift. Some home owners in Athens, Georgia, and across the U.S. continue to benefit from strong home equity positions, providing a cushion against economic uncertainty. As of late 2024, home equity levels reached one of the highest points in history, underscoring the resilience of the housing market even amid shifting conditions.

Home Equity Remains Strong Despite Market Fluctuations

Home equity, has climbed to impressive levels nationwide, with total homeowner equity surpassing $34 trillion. Even with slight declines in real estate values in the later half of 2024, equity remains a major financial asset for homeowners. This stability is particularly evident in Athens, where property values have remained robust thanks to steady demand and a thriving local economy.

For perspective, even if home prices were to experience a downturn, homeowners in Athens would still hold significant equity, mirroring trends across the country. A 10% dip in home values would still leave most homeowners with around 70% equity in their properties, which matches levels seen during the booming housing market of 2021.

How Athens' Housing Market Compares

While national real estate values saw fluctuations, Athens has remained a relatively stable market, and continues to attract homebuyers. Even as mortgage rates hovered in the mid 6% range, local real estate transactions remained steady. The demand for homes in areas surrounding the University of Georgia, as well as in emerging neighborhoods, has helped maintain property values and support equity growth.

Mortgage Debt Reaches New Highs

While home equity remains strong, mortgage debt also climbed to record levels, exceeding $13 trillion nationwide. This growth aligns with rising home values and the increasing cost of borrowing. However, data from the Federal Reserve, mortgage debt service payments as a percentage of disposable income in Athens-Clarke County remained at a manageable 1.35% in 2024, suggesting that local homeowners are effectively managing their mortgage obligations relative to their earnings.

Looking Ahead

As 2025 unfolds, the Athens real estate market is expected to remain resilient, with moderate price growth and sustained demand. Homeowners in the area can take comfort in knowing that their equity positions remain strong, providing a financial safety net regardless of broader economic conditions. With these economic reasons in mind, the market still presents opportunities, especially as interest rates stabilize, for homebuyers in Athens. 

MORTGAGE RATES
Rates Are Staying Low

Insight: Mortgage rates are starting to stabilize, in the mid 6’s. Mortgage rates in Athens continue to be lower than the national average, giving homeowners the perfect opportunity to purchase a home.

PODCAST
Is it Time to Jump Back to Airbnb

This week’s podcast is from Bigger Pockets, featuring Avery Carl. The Airbnb market has shifted, and seasoned investors are taking notice. After the short-term rental boom following lockdowns—fueled by low interest rates and a surge in local travel—many inexperienced hosts flooded the market, leading to oversaturation and tighter regulations. But now, the landscape is changing.

Avery Carl is an expert investor and author of Smarter Short-Term Rentals. This week she shares why she has never sold a vacation rental due to poor performance and how she continues to thrive while others struggle. She breaks down the best markets to invest in, strategies to boost bookings in competitive areas, and why you don’t need every luxury amenity to attract guests.

Plus, she explains why stricter Airbnb regulations could actually be a good thing for serious investors. Tune in to learn how to navigate the new short-term rental market and position yourself for success.

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