We’re transitioning into fall with a robust residential real estate environment.
Economist Taylor Marr stated that key indicators such as mortgage applications and pending sales signal a strong market going into the fall. Likewise, mortgage rates hit another new low on September 10th of 2.86%, supporting strong buying opportunities.
Post labor day, pending home sales are up 27% and prices are up 13% creating momentum going into the fall.
Below is the latest update from Q3 of 2020 for national and Atlanta markets.
The median home price in September was $319,261, the highest on record.
The average number of days homes have been on the market in August decreased by 36% from the same time last year. This is a huge drop since last quarter and lends to the growing strength of demand in the market.
Supply decreased in August, down 39% compared to the same time last year. This makes sense given the strong demand and presents good opportunities for sellers. Homebuilders are working hard to keep up with demand and are bullish on the continued growth, the hombuilder confidence index is at 83, which is the highest on record in the 35-year history.
Overall the housing market has remained fairly resilient given the pandemic and is now breaking out. I still see a good balance of opportunity for buyers to take advantage of low-interest rates and sellers to take advantage of limited inventory.
Atlanta continues to see home prices outpace the national average. Median Atlanta home sale prices were up 14.1% in August, compared to last year. The median home price in August was $308,000, well above the national median price. Comparatively, in August 2019, the median home price was $268,000.
The average number of days homes have been on the market in August decreased by 33%, with an average of 14 days, this is in line with the national average.
The drivers for the increased prices and quick movement can be attributed to increasing demand with low-interest rates and limited inventory.
Supply significantly decreased in August, down 38% when compared with the same time last year.
Atlanta has been an extremely resilient market with ongoing growth potential. Along with being home to 30 fortune 500 companies, new businesses continue to pour into the Atlanta metro area. A few notable ones include a Microsoft software development center and a new Amazon distribution center, both contributing to the growth of the labor force, which has averaged over 2.5% the last five years.
I tell you this because, in spite of economic setbacks from the pandemic, I am bullish and extremely optimistic about the Atlanta economy and the opportunities in the Atlanta residential real estate market.
Are you interested in buying or selling your home this fall? If so, please do not hesitate to contact me.