News headlines have been stating that there is a slowing down of the residential real estate market but here in Atlanta that is not the case.
Regardless of rising rates and inflation, people still need homes and inventories remain at record lows to where demand cannot be met. In fact, real estate experts are predicting that we won’t recover to pre-pandemic inventory levels for another two years.
Until we can get meaningful inventory I don’t see demand slowing down. Likewise, the total of millennial homebuyers continues to rise, now making up 43% of home buyers. As I wrote previously, millennials are the fastest-growing cohort in Atlanta.
So despite the headlines, I am still very bullish on the Atlanta market. And with that, below is a quarterly update and comparison of the national and Atlanta residential real estate market.
The median home price in February was $357,300, up 15% year over year.
The average number of days homes were on the market in February was 18 days, compared to 20 days in February 2021, a 10% decrease. Of the homes sold in February, 84% were on the market for less than one month.
The national supply remains low, sitting at 1.7 months in February. These supply challenges are expected to continue in the near term. Total housing inventory is down 15.5% from a year ago.
First-time buyers accounted for 29% of sales in February, down 6.5% year over year. However, first-time buyers have been steadily increasing this year, which is a bullish sign. Investors and second-home buyers accounted for 19% of home sales in February, up 17% year over year.
Overall, nationally, we had a strong quarter with ongoing high demand. The southern region of the country continues to lead with existing home sales growth. The south was the only region to show positive growth in February 2022 when compared to February 2021. We have now had a record 120 straight months of year-over-year increases at the national level.
The median Atlanta home sale price in February was $380,000, up 21.4% year over year. For perspective, the median price in February 2021 was 313,000. The Atlanta median sales price continues to outpace the national average.
The average number of days homes have been on the market in February decreased by approximately 25% from February 2021. Atlanta homes remained on the market for an average of 24 days in February 2022 versus 32 days in February 2021.
Supply significantly decreased in February, down approximately 18% year over year. Atlanta had 0.9 months of supply in February, much lower than the national supply of 1.7 months.
Home sales have been trending up since the beginning of the year which aligns with the low supply and strong demand. More properties are being listed as the year progresses but due to the low supply, they are moving very quickly.
Are you interested in buying or selling a home in 2022?
Navigating a low supply, high demand market can be challenging. That’s why it’s crucial to work with an experienced agent like myself to ensure you get the best price and quality.
If you are ready to sell your current home or find a new one, please do not hesitate to contact me.