They’re back. The cranes have once again arisen on the Atlanta skyline. And it doesn’t fall short of indicating that there has been some sort of economic recovery that is attracting developers to finish old projects or start on new projects in the Atlanta area.
The rise of the crane makes us wonder if we’re on the brink of another real estate or economic boom. If we were judging just based on the growth rate of the numbers of cranes in the sky, then maybe the argument would be valid. And we are in a position where we are paying close attention and cautious when it comes to the amount of new residential projects taking place, not just commercial. The good news is that existing and pending home sales are trending higher for the year and home prices continue to be in an uptrend. Mortgage rates are also falling this year, which provides opportunities for new home buyers at lower costs.
For our younger generation, the idea of buying a new home in years past made many feel weary. After all, this is the same generation that has been burned by two stock market crashes and a less-than-welcoming employment market. Nevertheless, they’ve shown resiliency and are now talking about and acting on purchasing homes. These individuals have brought the words “home purchase” back into their vocabulary.
From the aspect of investing in real estate within the equity markets, it has paid off handsomely. VNQ, the Vanguard REIT index, is up nearly 20% for the year. The Dow and S&P 500 are up 0.52% and 5.77%, respectively.
As we head towards the end of the year, real estate seems to be poised for a longer term uptrend despite the crane rising again in Atlanta. The future of real estate may be good with a young generation ready to buy. And from an investment standpoint, taking profits from a space that has dominated so far this year may not be a bad idea.