With stabilizing interest rates, buyers and sellers are beginning to step back into the Atlanta market. In December, there was a 3.4% increase in monthly sales in what is typically a slower month. While the numbers for January are not in yet, I do expect to see another increase as, anecdotally, I have participated in an increase in client activity.
Now that we can anticipate stabilizing markets, we can forecast some key trends that may play out here in the Atlanta residential real estate market. These trends can help buyers and sellers make educated real estate decisions in 2024.
Below are four trend predictions for 2024.
Atlanta will continue to be a top real estate market, with its affordability, employment conditions, and population growth being significant factors.
The market is currently more affordable than many U.S. regions, with a healthy job market boosted by major tech companies like Google establishing offices in the area. This has led to substantial rapid population growth and will continue to fuel housing demand.
I expect home prices in Atlanta to continue rising but at a slower pace than in previous years. This is due to several factors, including economic conditions and Fed policies.
As of December 2023, the median sales price for homes in metro Atlanta was around $400K, down 7.4% from the June 2022 high of $432K. The average days on the market is around 37 days. The average rent in Atlanta is roughly $1,813.
The city’s population and metro area continue to grow, with the population in the metro area being over 6 million. The unemployment rate has dropped to around 3.9%. That said, there is some upside to expect in housing prices this year.
Specific neighborhoods, particularly on Atlanta’s southside, are experiencing dramatic increases in home prices. The ongoing Atlanta Beltline project will continue influencing prices in the surrounding neighborhoods, especially around the Eastside, Westside, and Southside Trails.
I expect Midtown, Little 5 Points, West End, Edgewood, Kirkwood, and Morningside Lenox Park to be some of the top neighborhoods.
Real Estate Investment
As mentioned, Atlanta’s population and job growth have been significantly higher than the national average. The city’s population growth was about 16% from 2010 to 2021. Job growth has also been robust, with new jobs being created at a rate higher than the national average.
These factors contribute to making Atlanta an attractive market for real estate investment. For example, high-rises like the Mayfair Tower, which have come off their highs, look to be good rebound and investment opportunities for longer-term investors.
While the Atlanta real estate market continues to grow and attract investment, buyers and sellers must navigate the challenges of a dynamic market, including rising home prices and interest rate fluctuations. The influence of significant projects like the Atlanta Beltline and Downtown developments, along with the influx of major employers, will contribute to the city’s real estate market dynamics in 2024.
If you want to buy or sell this year, now is an excellent time to start looking or putting your strategy together. If you are ready, please do not hesitate to contact me, and I will help you navigate this dynamic market.