2021 has been a stellar year for the residential real estate market in Atlanta. We continue to have one of the fastest-growing big city markets in the country and I don’t see that changing in the near future.
However, as I wrote last month, we could see a slow down of pricing growth in 2022 as interest rates rise.
Nevertheless, we finished 2021 with a remarkably strong market both nationally and locally. Below is an overview of how the markets performed in the last quarter of 2021.
The median home price in November was $353,900, up 13.9% year over year.
The average number of days homes were on the market in November was 18 days, compared to 21 days in November 2020, a 14.3% decrease. 83% of homes sold in November were on the market for less than a month.
The national supply remains low, sitting at 2.1 months. These supply challenges are expected to continue in the near term. Total housing inventory is down 13.3% from November 2020.
First-time buyers accounted for 26% of sales in November, down 32% year over year. This decline is most likely due to buyers getting priced out of the market and limited inventory. Investors and second-home buyers accounted for 15% of home sales in November, up 14% year over year.
Overall, nationally, we had a strong quarter. The southern region of the country had the strongest sales price growth of the quarter. Remarkably, we have now had a record 117 straight month of year-over-year increases at the national level.
The median Atlanta home sale price in November was $371,800, up 21.5% year over year. For perspective, the median price in November 2020 was 306,000. The Atlanta median sales price is 5% above the national average.
The average number of days homes have been on the market in November decreased by approximately 27% from November 2020. Atlanta homes remained on the market for 8 days in November 2021 versus 11 days in November 2020.
Supply significantly decreased in November, down approximately 31% year over year. Atlanta had 1.1 months of supply in November, much lower than the national supply of 2.1 months.
Home sales tapered off in the last few months, most likely due to seasonality and first-time buyers getting priced out. Nevertheless, Atlanta’s housing shortage coupled with its ongoing population growth indicates that the Atlanta market will remain strong in 2022 despite rising interest rates.
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 realtor 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.