With such aggressive rate increases from the FED, you would expect a relatively substantial decline in home prices. However, due to the ongoing supply issues, elevated home prices have been resilient, with only moderate declines in specific markets. We seem to be at a curious standstill in the housing market where prices, buyers, builders, and sellers are not budging.
I don’t foresee any significant changes in the urban Atlanta market in the near term. Demand still exists, and there is not enough supply. However, as I wrote about last month, I am starting to see some better opportunities for astute buyers.
Below I outline the most recent data from a national and local market perspective.
The median home price in August was $389,500, up 7.7% from August 2021.
The average number of days homes were on the market in August was 16 days, compared to 17 days in August 2021. Of the homes sold in August, 81% were on the market for less than one month.
The national supply remains low, sitting at 3.2 months in August. These supply challenges are expected to continue in the near term. While inventory is still low, it’s an improvement from August 2021, which recorded 2.6 months of supply.
First-time buyers accounted for 29% of sales in August, slightly up from last quarter and consistent with August 2021. Investors and second-home buyers accounted for 16% of home sales in August, up from 15% in August 2021.
Overall, nationally, we had a relatively uneventful quarter with prices and demand stabilizing. The southern region of the country had a 19.3% decline in sales from a year ago. However, prices in the south region have increased 12.4% year over year, most likely contributing to the sales decline as buyers get priced out.
We now have a record 126 straight months of year-over-year price increases at the national level, the longest streak on record.
The median Atlanta home sale price in August was $407,343, up 13.5% from August 2021. The median price in August 2021 was 358,000. However, the median sales price has fallen 5.9% from the peak in June of this year.
The average number of days homes have been on the market in August increased by 25% from August 2021. Atlanta homes remained on the market for an average of 20 days in August 2022 versus 16 days in August 2021.
Supply increased in August, up approximately 50% from August 2021. However, the increase is not as significant as the percentage suggests. Atlanta had two months of supply in August 2022, compared to a dismal 1.3 months in August 2021. Atlanta’s supply is still well below the national average.
Home sales are up from the beginning of the year but are 23% lower than a year ago and down 15.5% from June.
Atlanta is still in a challenging supply and price position. Prices remain elevated due to limited supply. Likewise, the population continues to grow, so I don’t see significant supply or price relief in the near term.
Nevertheless, prices are no longer at their peak; they have stabilized and fallen in many pockets throughout the city.
In summary, deficient supply, rising rates, and elevated prices have left the market at a standstill. I do not see any significant changes in Atlanta in the near term.
However, opportunities are arising for buyers who know where to look. That’s why working with an experienced agent like myself is crucial to ensure you get the best home for your needs.
If you are ready to sell your current home or find a new one, please do not hesitate to contact me.