Whether or not the extremely low mortgage rates are behind us remains to be seen. Nevertheless, potential future rate increases do not seem to be holding back the market.
And if rates do continue to creep up, they are only forecasted to be around 3.5% towards the end of 2022.
What’s encouraging is that I continue to see demand and home values at record highs; outside of a winter slowdown, I don’t anticipate demand dropping off significantly in the immediate future.
All that said, below is the latest update from Q3 of 2021 for the national and Atlanta markets.
The median home price in August was $356,700, up 15% from August 2020.
The average number of days homes were on the market in May was 17 days, compared to 22 days in August 2020, a 23% decrease. 87% of homes sold in August were on the market for less than a month.
Supply remains extremely low, sitting at 2.6 months, favoring sellers. In August 2020, supply was three months. For reference, a balanced supply generally sits at six months.
First-time buyers accounted for 29% of sales in August, down from 33% in August 2020, indicating first-time buyers may still be getting priced out of the market. Investors and second-home buyers accounted for 15% of home sales in August.
The housing market continues to be healthy, and I expect as we move through the winter cycle, it will continue its strength in 2022.
The median Atlanta home sale prices were up 17.6% in August, compared to August 2020. The median home price in August was $360,000, above the national median price. Comparatively, in August 2020, the median home price was $306,000.
The average number of days homes have been on the market in August decreased by approximately 55.6% from August 2020. Atlanta homes remained on the market for 16 days in August 2021 versus 36 days in August 2020.
Supply significantly decreased in May, down 57.7% when compared with the same time last year. Atlanta has 1.1 months of supply, much lower than the national supply.
It’s no surprise that the Atlanta metro continues with high demand. It’s ranked as one of the best cities for remote work with a top-rated tech infrastructure.
Are you interested in buying or selling in this competitive market?
Keep in mind that it becomes more challenging to navigate a competitive mark for quality homes with high demand and low inventory. 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.