April 2024: Quarterly Market Update
Since my last quarterly update, mortgage rates have been steady as the Federal Reserve continues to maintain interest rates at current levels.
The current 30-year fixed mortgage rate is historically high when looking at the period of time since the 2008 financial crisis; see the 20-year chart below.
However, demand has been steadily increasing despite the historically high rates. The most recent pending home sales data (a forward-looking indicator) from February shows an increase of 1.6%.
As we enter the spring season, I am optimistic about the Atlanta real estate market. Since the start of the year, I have seen a significant increase in traffic from both buyers and sellers, which is very encouraging, given that it is so early in the season.
As you will see in the numbers, Atlanta is still in a constrained supply environment, well below the national average. This should help keep us in a dynamic yet stable local market in the near term.
Below, I outline the most recent data from a national and local market perspective.
National Market Analysis
Median home price
The national median home price in February was $384,500, up 5.7% from February 2023. In February, all four U.S. regions saw an increase in median home prices.
Days on the market
The national average for the number of days homes were on the market in February was 38, compared to 34 days in February 2023.
Supply
The national supply for February is 2.9 months, up 6% from February 2023, when it was 2.6 months.
Buyers
First-time buyers accounted for 26% of sales in February, down from 27% from February 2023. Investors and second-home buyers accounted for 21% of home sales in February, up from 18% from February 2023.
Region
In the country’s southern region, home sales are down 7.7% from February 2023. However, prices in the southern region have increased by 9.8% from January. The median home price in the southern region during February was $354,200.
As of March, the 30-year fixed rate mortgage average is 6.74%, up from 6.60% a year ago.
Atlanta Market Analysis
Median home price
The Atlanta median home sale price in March was $429,990, up 8.9% from March 2023. The median sales price continues to rise from its low of $400,000 at the beginning of the year.
Days on the market
The Atlanta average for the number of days homes were on the market in March was 35, compared to 43 days in March 2023. The average number of days homes are on the market is down 14.6% from the beginning of the year.
Supply
The Atlanta supply for March is 2.7 months, up 42% from March 2023. A healthy market has 4-6 months of supply, so Atlanta still has significant supply challenges. It is also below the national average of 2.9 months.
Home sales
Atlanta home sales in March were down 22.5% from February 2023 but up 38% from the beginning of 2024.
Atlanta is still challenged with finding a balance of supply and demand. However, the Atlanta real estate environment has remained positive so far this year, with healthy pricing and ongoing new construction to meet demand.
Likewise, sellers are starting to step back into the market. Within the last several weeks, I’ve had two new properties come on the market in desirable areas: a one-bedroom, one-bathroom condo at the Mayfair Tower and a two-bedroom, two-bathroom condo at Lennox Green.
Conclusion
Home prices in Atlanta are stable, and buying and selling interest has picked up significantly despite historically high mortgage rates. I believe that the Atlanta market will continue to have a resilient and positive 2024 as we move into a busier season. However, we are still in a supply-challenged environment both nationally and locally, so I do not anticipate any significant fluctuations in price in the near future.
As of now, there are many attractive buying opportunities available in select areas of the Atlanta market. It is important to act quickly on these opportunities, as I am seeing properties moving faster than they have in 20203.
To ensure that you find the best home for your needs, it is essential to work with an experienced realtor, such as myself. If you are ready to buy or sell a home, please do not hesitate to contact me.
