Since my last quarterly update, mortgage rates have been gradually increasing. Despite this increase, the market still displays a robust demand. The limited inventories have played a key role in keeping the market steady amidst the current economic conditions.
It is important to highlight that Atlanta has emerged as one of the most resilient markets in the United States, with a significantly lower supply than the national average. As a result, the demand for properties in this area has remained high. In fact, buyers are quickly stepping in when quality properties hit the market.
Looking forward, Atlanta’s long-term prospects remain strong. The city has solidified its position as a top business-friendly hub in the Southeast region. This is evident in the ongoing expansion of Google’s Atlanta offices, as well as the fact that it is one of the most start-up-friendly cities in the U.S. Therefore, now more than ever is an exciting time to invest in a home in Atlanta.
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 August was $407,100, up 3.9% from August 2022. In August, 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 August was 20, compared to 16 days in August 2022. Of the homes sold in August, 72% were on the market for less than one month.
Supply
The national supply for August is sitting at 3.3 months. While we are still facing supply challenges, supply is improving as homebuilders continue to ramp up construction. Supply is up 3.1% from August 2022, which sat at 3.2 months of supply.
Buyers
First-time buyers accounted for 29% of sales in August, down from 30% in August 2022. Investors and second-home buyers accounted for 16% of home sales in August, equal to August 2022.
Region
In the country’s southern region, home sales are down 12.4% from a year ago. However, prices in the southern region have increased by 3.2% year over year. The median home price in the southern region during August was $366,100.
As of September 14th, the 30-year fixed rate mortgage average is 7.18%, down from 6.02% a year ago.
Atlanta Market Analysis
Median home price
The Atlanta median home sale price in August was $425,000, up 4.7% from the August 2022. The median sales price continues to rise and has risen 13.3% from the January 2023 low of $375,000.
Days on the market
The Atlanta average for the number of days homes were on the market in August was 26, compared to 20 days in August 2022. However, the average is down 40% from the beginning of the year.
Supply
The Atlanta supply for August is sitting at 2.3 months. The supply is up approximately 9.5% from August 2022. Recall that a healthy market has 4-6 months of supply, so Atlanta still has significant supply challenges, and it is well below the national average of 3.3 months.
Home sales
Atlanta home sales in August are down 13.6% from August 2022. But up 80% from the beginning of 2023.
Atlanta is still in a challenging supply and strong price position. Prices remain up over 39% compared to August 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.
Conclusion
Home prices in Atlanta have been steadily increasing throughout the year. However, I anticipate that this trend will stabilize as we move into the winter months. Due to the combination of high mortgage rates and low inventory, I do not anticipate any significant fluctuations in the housing market in the near future.
Despite these conditions, there are still many attractive buying opportunities available in select areas of the Atlanta market. It is important to act quickly on these opportunities, as they tend to disappear fast. 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.