As we transition into summer, we’re seeing growing strength in the residential real estate market. Based on recent data and my observations and analysis over the last three months, I believe we’ll have a strong upcoming quarter and summer season.
In this post, I will provide an update on both the National and Atlanta residential real estate markets.
Median US home sale prices were up 6.4% May, on a rolling 12-month basis. The median home price in May was $250,000. This growth is almost identical to the growth measured at the same time last year. As such, we continue to see steady positive growth in the US residential real estate market.
The average number of days homes have been on the market in May decreased by 2.2% from the same time last year. While we are still seeing a predominantly seller’s market, days homes have been on the market have begun to level out. May 2018 saw a much larger comparative 12-month decrease of 8%. Overall, leveling out is good news for buyers.
Likewise, in May, we saw a slight uptick in supply of 3.4% over the 12 month period.
The leveling out of sales prices and inventory indicates markets are operating more efficiently, which is good for both buyers and sellers. Sellers are still able to get excellent value out of their homes and buyers are less likely to get into bidding wars.
Atlanta continues to outpace national averages with strong growth. Additionally, with a mild winter and spring, we didn’t see a downtick in prices.
Median Atlanta home sale prices were up 9.5% in May, on a rolling 12-month basis. The median home price in May was $410,460, well above the national median price. Additionally, this growth is significantly higher than the growth measured at the same time last year, which was 4%. As such, Atlanta continues to be a hot growth market.
The average number of days homes have been on the market in May decreased by 2.4% from the same time last year. Similar to national averages, days on the market have begun to level out, with a May 2018 comparative 12-month decrease of 7%. Again, good news for buyers.
The leveling out of days on the market can be explained by the significant increase in supply. Supply is up 14.3% over a 12 month period, 4 times the national increase. This increase is due to a significant amount of new construction residential properties coming available.
With strong price growth and the increased inventory, I expect a strong selling and buying season this summer in Atlanta, especially as more new construction projects get completed.
Are you interested in buying or selling your home this summer, taking advantage of the growth or increased inventory? If so, please do not hesitate to contact me.