As the pandemic continues to loom, folks are trying to move forward with positive changes. This can be seen in the current real estate market. People are taking advantage of low-interest rates and advancing home-buying plans.
New home sales rose 16.6% in May, however, inventory is still low, setting up a competitive environment for the summer season.
Below is the latest update from Q2 of 2020 for national and Atlanta markets.
Median US home sale prices were up 4% in May, on a rolling 12-month basis. The median home price in May was $269,900. Growth in sales price has picked back up, largely due to limited inventory, creating a more competitive environment.
Days on Market
The average number of days homes have been on the market in May decreased by 5.6% from the same time last year. Again, I see buyers ready to get back into the market but the supply just isn’t there. For this reason, I am seeing more competition which is leading to fewer days on the market.
Supply decreased in May, down 18.2% compared to the same time last year. This is in line with my previous comments regarding increased sales price and fewer days on the market. This combination sets up good opportunities for sellers.
Overall there is still economic uncertainty but the housing market has remained fairly resilient. I see a good opportunity for buyers to take advantage of low-interest rates and sellers to take advantage of limited inventory.
As of this writing on June 25th, the current average 30 yr fixed rates are at 3.37%.
Atlanta continues to see home prices higher than the national average. Median Atlanta home sale prices were up 5.1% in May, on a rolling 12-month basis. The median home price in May was $309,900, well above the national median price. Comparatively, in May 2019, the median home price was $295,000.
Days on Market
The average number of days homes have been on the market in May increased by 10%. While this is still higher than the national average, the number has decreased significantly from the Q1 report.
I believe there are a couple of drivers influencing this, the first is a decrease in inventory and the second is buyers re-entering the housing market.
Supply decreased in May, down 7.7% when compared with the same time last year. However, supply has been slowly climbing back from the February lows, it’s up 13.8%.
As I have been saying, Atlanta has been an extremely resilient market. Even with economic uncertainty, I believe we will continue to see growth. The growth could manifest itself differently from the past as developers and buyers adjust to new demands but overall 2020 will continue to be a good year in the housing market.
Are you interested in buying or selling your home this summer? If so, please do not hesitate to contact me.