Over the last few months, mortgage rates have remained steady, with the FED pausing rate increases in the immediate term.
Nevertheless, the FED has hinted at the possibility of resuming rate hikes during the back half of the year.
As I mentioned in last month’s newsletter, I believe that home prices will gradually tick up through the summer. Therefore, with some current stability, buying sooner rather than later this summer could be a wise purchasing decision. Likewise, you can avoid a potentially higher mortgage rate in the later months of the year if rate hikes resume.
As you will see from the analysis below, buyers are already starting to step back in to take advantage of some of the current prices and rates.
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 May was $396,100, down 3.1% from May 2022 but up 1.9% from April 2023.
Days on the market
The national average for the number of days homes were on the market in May was 18, compared to 16 days in May 2022. Of the homes sold in May, 74% were on the market for less than one month.
The national supply for May is sitting at 3.0 months. We are still facing supply challenges mainly due to potential sellers waiting on the sidelines; builders continue to take advantage of the supply need. Supply is up 15% from May 2022, which sat at 2.6 months of supply.
First-time buyers accounted for 28% of sales in May, up from 27% in May 2022. Investors and second-home buyers accounted for 15% of home sales in May, down from 16% in May 2021.
In the country’s southern region, home sales are down 16.5% from a year ago but are up 1.5% from April 2023. Prices in the southern region have decreased by 2.7% year over year.
As of June 15th, the 30-year fixed rate mortgage average is 6.69%, down from 6.71% at the beginning of June but up from 5.78% a year ago.
Atlanta Market Analysis
Median home price
The Atlanta median home sale price in May was $420,000, down 2.2% from the May 2022 median price of $430,000. However, the median sales price continues to rise and has risen 12% from the January 2023 low.
Days on the market
The Atlanta average for the number of days homes were on the market in May was 30, compared to 15 days in May 2022. However, the average is down 35% from the beginning of 2023.
The Atlanta supply for May is sitting at 1.9 months. The supply is up approximately 46% from May 2022. However, the increase is not as significant as the percentage suggests; the May 2022 supply was at a dismal 1.3 months. Recall that a healthy market has 4-6 months of supply. Atlanta’s supply is still well below the national average of 3 months.
Atlanta home sales in May are down 20.5% from May 2022. But up 90% from the beginning of 2023.
Atlanta is still in a challenging supply and strong price position. Prices remain up over 47% compared to May 2020. Atlanta’s real estate market continues to be resilient and outpace the national market. I anticipate this resiliency to continue with Atlanta’s projected population and business growth.
In Atlanta, home prices continue to increase for the year, and I expect the trend to continue upwards, at least through the home-buying season. Likewise, buyers are beginning to accept the new rate environment and starting to resume their search. I don’t foresee any significant downward changes at such low inventory levels.
I see some excellent buying opportunities in certain desirable pockets in the Atlanta market, but these opportunities move quickly. That’s why working with an experienced realtor like myself is crucial to ensure you get the best home for your needs.
If you are ready to buy or sell a home, please do not hesitate to contact me.