Atlanta 2025 Market Outlook

As we start the new year, I want to share some of my thoughts on the Atlanta market in 2025.

We ended 2024 with an annual median sales price growth of 0.8%. In November, the number of homes for sale was at an annual increase of 39%, and months of supply was 3.6, a 38.5% increase from 2023. The average days on the market in November were 42, up 40% from 2024.

As you can see, we ended the year with a significant increase in inventory and diminishing demand. I suspect much of this is due to buyers sitting on the sidelines for lower rates.

While we are ending the year slower, 2025 looks promising for the Atlanta housing market.

Primary Factors Driving the 2025 Atlanta Housing Market

Population Growth & Demographics

Atlanta has been one of the fastest-growing metro areas in the country, attracting people from other regions due to its strong job market, relatively affordable cost of living, and favorable climate.

Estimates from the Atlanta Regional Commission show that, on average, metro Atlanta is gaining 5,000 people per month. Population growth will continue to be the biggest driver in 2025. This trend should continue through 2025, keeping housing demand healthy.

Likewise, as the city population grows, more residents may look toward suburban areas like Alpharetta, Marietta, and Roswell, also driving growth there. Demand for mixed-use developments integrating residential, retail, and office spaces will also add to steady growth.

Employment & Economic Drivers

Major companies have established significant presence in and around Atlanta (e.g., Microsoft, Google, and other tech firms). If new corporate expansions or relocations continue, this will bolster job opportunities, attract additional population, and support housing demand.

Atlanta’s economy encompasses technology, logistics, film and entertainment, healthcare, and finance. This diversification will help insulate the region from economic sector fluctuations and stabilize overall housing demand.

Interest Rates & Lending Environment

The Federal Reserve’s monetary policy has impacted the housing market over the last few years. The average estimates for a 30-year fixed mortgage rate in 2025 ranges between 5.9% and 6.6%. If mortgage rates begin falling in 2025, more buyers will be able to enter the market with increased purchasing power, sustaining or increasing home prices.

Conversely, If banks begin to tighten lending standards in response to economic conditions, it may be harder for some buyers to qualify for mortgages. This can dampen home price growth but also create opportunities for well-qualified buyers.

Housing Supply & New Construction

Over the past few years, Atlanta has seen a shortage of affordable housing, particularly for first-time buyers. Persistent low inventory can drive prices up further and create a competitive market. However, within the last quarter of 2024, we have seen a steady increase in supply, which will help support the housing shortage.

Likewise, an ongoing surge in new construction (condos, single-family homes, and mixed-use projects) could mitigate supply constraints. One example is downtown Atlanta, where several major revitalization projects are underway.

Nevertheless, there are great opportunities if you know where to look. Here are examples of two great opportunities for luxury condos in Midtown: 845 Spring Street NW and 1156 Piedmont Ave.

Leasing Market

If homeownership becomes less attainable due to rising prices or stricter lending, the leasing market could stay robust, supporting demand for multi-family developments. There are some excellent leasing opportunities available in Midtown right now. For example, I have four luxury leases available at the Mayfair, such as this designer studio.

Furthermore, there are many investment opportunities; Atlanta has historically attracted individual and institutional investors due to its growing economy. If rental yields remain attractive and vacancy rates stay low, the city could continue to draw investment capital.

Transit & Infrastructure

Projects like the BeltLine and other transportation initiatives (including expansions to public transit) can transform neighborhoods and potentially boost property values in underdeveloped areas in 2025. Connecting with a seasoned real estate agent like me is crucial because I can help guide you to up-and-coming areas.

Moreover, Atlanta’s push toward technological infrastructure (such as connectivity, green space, and municipal partnerships) can drive long-term growth in specific corridors and up-and-coming neighborhoods.

Conclusion

Cautious Optimism: Most economic indicators—population growth, corporate expansions, and a steady job market—point to continued demand for housing in the Atlanta area.

Mindful of Rates & Policy: The pace at which mortgage interest rates move will significantly influence buying power and overall market momentum.

Localized Markets: Atlanta’s unique, under-the-radar neighborhoods and suburban markets will offer opportunities. Affordability remains a concern, so areas offering relatively affordable entry points will likely see stronger demand and appreciation potential.

Overall, the broader fundamentals suggest Atlanta could see moderate to strong price growth in 2025. Local economic factors, interest rate policies, and national economic conditions will all play crucial roles. If you’re considering buying or investing, make sure to enlist an experienced realtor who has a pulse on the local market, insights on neighborhood-level data, and knowledge of local development projects.

As always, please contact me if you are ready to buy or sell 2025.

Fall 2024 Market Update

Since my last update, the Fed cut interest rates, which took some pressure off mortgage rates and provided some relief for buyers. As of October 24th, the Freddie Mac 30-year fixed mortgage rate was 6.54%, rising slightly from the low established in September.

As we move towards year-end, I am seeing green shoots in the market for buyers and sellers nationally and in the Atlanta metroplex.

For buyers, inventory has been increasing, and prices have remained stable. For example, within the last month, I have two new home listings and six new luxury condos for lease, which you can see here. Likewise, as rates continue to improve, buyers have increased their purchasing power, improving affordability.

For sellers, lower rates and strong demand increase the opportunity for faster turnarounds on properties and potential competition over price.

Overall, we have a strong market heading into the fall. To help you make an informed decision in November, I have outlined the most recent data from a national and local market perspective.

National Market Analysis

Median home price

The national median home price in September was $404,500, up 3% from September 2023. It’s the 15th consecutive month for year-over-year price increases.

Days on the market

The national average for the number of days homes were on the market in September was 28, compared to 26 days in August 2024.

Supply

The national supply for September is 4.3 months, up 26% from September 2023, when it was 3.4 months.

Buyers

First-time buyers accounted for 26% of sales in September, down from 27% from September 2023. Investors and second-home buyers accounted for 16% of home sales in September, down from 18% from September 2023.

Region

Home sales in the country’s southern region are down 5.5% from September 2023. However, prices in the southern region have increased by .8% from September 2023. The median home price in the southern region during September was $359,700.

Atlanta Market Analysis

Median home price

The Atlanta median home sale price in September was $425,000, up 3.7% from September 2023. The median sales price is 6% off it’s low of $400,000 at the beginning of the year.

Days on the market

The Atlanta average for the number of days homes were on the market in September was 37, compared to 30 days in September 2023. The average number of days homes are on the market is down 9.7% from the beginning of the year.

Supply

The Atlanta supply for September is 3.7 months, up 48% from September 2023. A healthy market has 4-6 months of supply, so Atlanta still has moderate supply challenges, but we have the highest supply in the last 3 years. It is also below the national average of 4.3 months.

Home sales

Atlanta home sales in September were down 5.5% from September 2023 but up 38% from the beginning of 2024.

Atlanta is still challenged with finding a balance of supply and demand. However, due to its location, economy, business environment, and population growth, it continues to be one of the most resilient markets in the country.

Likewise, while I don’t have the final numbers, sellers have been listing homes this fall at the fastest pace I have seen this year. Intown listings have been increasingly popular and moving fast due to the fair prices from previous years. My current listing in Midtown at 845 Spring Street NW is an excellent example of this.

Conclusion

Atlanta’s market has been resilient and is starting to move in a positive direction. Right now, I see an excellent balanced opportunity for both buyers and sellers.

Nevertheless, this fall, both buyers and sellers will need to stay informed about local market conditions, as trends can differ from one neighborhood to another in the metroplex.

Buyers may find it an opportunistic time to negotiate or look into new construction projects, while sellers should price their homes competitively and be prepared for negotiations and buyer competition.

With so many nuances in this market, engaging with a knowledgeable and experienced Realtor like myself can be crucial for navigating the market effectively. If you are ready to buy or sell a home, please do not hesitate to contact me.

Atlanta Real Estate Market Outlook for the Second Half of 2024

In the latter half of 2024, the Atlanta real estate market presents a unique landscape for buyers and sellers. With recent shifts in mortgage rates and economic indicators, I want to provide an overview of the Atlanta market dynamics and opportunities in the back half of this year so you can make informed decisions when buying or selling a home.

Interest Rate Trends and Their Impact

As I have discussed in recent blog posts, the Federal Reserve’s “higher for longer” interest rate policy has dominated much of 2024, leading to fluctuating mortgage rates that have kept buyers and sellers on the sidelines.

However, a recent dip in rates, the lowest since April 2023, has brought renewed optimism to the market. The national average for the 30-year fix is hovering around 6.5%. This reduction in mortgage rates has significantly improved affordability, giving buyers greater purchasing power. According to a recent Redfin report, buyers have gained nearly $30,000 in purchasing power over the past month due to these lower rates, making it a more favorable time to enter the market.

What Buyers Can Expect

Increased Purchasing Power:

The drop in mortgage rates means buyers can afford more expensive homes without increasing monthly payments. For instance, according to the Redfin report, the monthly mortgage payment on the median-priced U.S. home, which goes for roughly $443,000, is $2,842 with today’s average mortgage rate. Just one month ago, the payment would have been $3,032, nearly $200 more. This increase in affordability allows buyers to explore a broader range of properties, potentially in more desirable neighborhoods.

Strategic Timing:

Acting sooner rather than later could be advantageous for those considering a home purchase. As mortgage rates stabilize or potentially decrease further, competition among buyers is expected to intensify, which could drive up home prices. Buyers may avoid the rush by entering the market now and secure better deals before demand peaks.

Negotiation Leverage:

With more homes likely to come onto the market due to improved seller confidence, buyers may have more options. This increase in inventory can give buyers greater leverage during negotiations, particularly on properties that have been listed for an extended period.

What Sellers Can Expect

Potential Price Pressure:

The increase in buyer affordability could lead to a surge in demand, particularly for well-priced homes in desirable Atlanta neighborhoods. Sellers who list their homes in the coming months, especially before the anticipated September rate cut, may benefit from quicker sales and, in some cases, multiple offers.

Capitalizing on Demand:

Sellers should consider listing their homes soon to take full advantage of the current market conditions. With buyers gaining purchasing power, there is a window of opportunity for sellers to achieve favorable sale prices, particularly if their property is move-in ready and competitively priced.

Preparing for a Competitive Market:

As more sellers may decide to list their properties due to improving market conditions, ensuring that a home is in excellent condition will be critical. Professional staging, minor renovations, and strategic pricing will be essential in attracting buyers and standing out in what could become a more crowded market.

Conclusion: Strategic Moves for Buyers and Sellers

The second half of 2024 is poised to be a dynamic period for the Atlanta real estate market. Buyers now have an opportunity to capitalize on increased affordability due to lower mortgage rates, while sellers can benefit from the growing demand. Both groups should stay informed about ongoing economic and market trends to make the most strategic decisions. For buyers, this might mean locking in a favorable mortgage rate soon, while sellers may want to list their properties soon to take advantage of the current market momentum.

It will be essential to work with a seasoned Realtor like myself who understands these trends and can help you find opportunities and prepare accordingly.

If you are ready to buy or sell a home in Atlanta in the coming months, please do not hesitate to contact me.

July 2024: Quarterly Market Update

Since my last quarterly update, mortgage rates have been steady as the Federal Reserve continues to maintain interest rates at current levels. Mortgage rates could begin to fall in the second half of the year if the FED stays committed a rate cut.

Demand has picked back up, much of it due to seasonality, but I also get a sense that buyers cannot continue to wait in the hopes that rates will materially change. Likewise, prices continue to move slowly higher both in Atlanta and Nationally. The national median home price is the highest on record.

As we enter summer, I expect home prices in the Atlanta metro to move higher. I am seeing more activity from both buyers and sellers in an ongoing supply-constrained market.

Below, I outline the most recent data from a national and local market perspective.

National Market Analysis

Median home price

The national median home price in May was $419,300, up 5.8% from May 2023. This is the highest national median price ever recorded. In May, all four U.S. regions saw an increase in median home prices.

Days on the market

The national average for the number of days homes were on the market in May was 24, compared to 26 days in April 2024.

Supply

The national supply for May is 3.7 months, up 19% from May 2023, when it was 3.1 months.

Buyers

First-time buyers accounted for 31% of sales in May, up from 28% from May 2023. Investors and second-home buyers accounted for 16% of home sales in May, up from 15% from May 2023.

Region

In the country’s southern region, home sales are down 5.1% from May 2023. However, prices in the southern region have increased by 3.6% from May of 2023. The median home price in the southern region during May was $374,300.

As of June 20th, the 30-year fixed rate mortgage average is 6.87%, up from 6.67% a year ago.

Atlanta Market Analysis

Median home price

The Atlanta median home sale price in May was $434,000, up 3.3% from May 2023. The median sales price continues to rise from its low of $400,000 at the beginning of the year.

Days on the market

The Atlanta average for the number of days homes were on the market in May was 28, compared to 30 days in May 2023. The average number of days homes are on the market is down 31.7% from the beginning of the year.

Supply

The Atlanta supply for May is 3.2 months, up 68% from May 2023. A healthy market has 4-6 months of supply, so Atlanta still has supply challenges, although they are improving. It is also below the national average of 3.7 months.

Home sales

Atlanta home sales in May were down 1.1% from May 2023 but up 86% from the beginning of 2024.

Atlanta is still challenged with finding a balance of supply and demand. However, the Atlanta real estate environment has remained positive so far this year, with healthy pricing and ongoing new construction to meet demand.

Likewise, sellers continue to list homes on the market. Within the last several weeks, I’ve had two new Midtown properties come on the market in desirable areas: a one-bedroom, one-bathroom condo at the Mayfair Tower and a two-bedroom, 1.5-bathroom condo at 287 14th St NW.

Conclusion

Atlanta’s Home prices are increasing, and buying and selling interest has risen significantly despite historically high mortgage rates. Despite ongoing supply challenges, the Atlanta market will continue to have a resilient and optimistic back half of 2024.

Currently, many attractive buying opportunities are available in select areas of the Atlanta market. It is essential to act quickly on these opportunities, as I see properties moving faster as the number of days homes sit on the market steadily decreases.

Working with an experienced realtor, such as myself, is essential to ensure that you find the best home for your needs. If you are ready to buy or sell a home, please do not hesitate to contact me.

How to Navigate a Higher Rate Environment in Atlanta Real Estate

I am sure most of you have heard the words “higher for longer” as a headline in mainstream media, where the majority opinion is that the FED will maintain current rates for the more immediate future.

So, what does this mean for mortgage rates and buyers and sellers in Atlanta?

As we navigate through 2024, the Federal Reserve’s commitment to maintaining “higher for longer” interest rates will shape the economic landscape for the second half of the year. Importantly, it will have ramifications on the real estate market in Atlanta.

This blog post will examine how interest rates are reshaping mortgage affordability, home prices, and the overall market dynamics in Atlanta. I will provide strategic insights for both buyers and sellers to help navigate the market.

April 2024: Quarterly Market Update

Since my last quarterly update, mortgage rates have been steady as the Federal Reserve continues to maintain interest rates at current levels.

The current 30-year fixed mortgage rate is historically high when looking at the period of time since the 2008 financial crisis; see the 20-year chart below.

However, demand has been steadily increasing despite the historically high rates. The most recent pending home sales data (a forward-looking indicator) from February shows an increase of 1.6%.

As we enter the spring season, I am optimistic about the Atlanta real estate market. Since the start of the year, I have seen a significant increase in traffic from both buyers and sellers, which is very encouraging, given that it is so early in the season.

As you will see in the numbers, Atlanta is still in a constrained supply environment, well below the national average. This should help keep us in a dynamic yet stable local market in the near term.

Below, I outline the most recent data from a national and local market perspective.

National Market Analysis

Median home price

The national median home price in February was $384,500, up 5.7% from February 2023. In February, all four U.S. regions saw an increase in median home prices.

Days on the market

The national average for the number of days homes were on the market in February was 38, compared to 34 days in February 2023.

Supply

The national supply for February is 2.9 months, up 6% from February 2023, when it was 2.6 months.

Buyers

First-time buyers accounted for 26% of sales in February, down from 27% from February 2023. Investors and second-home buyers accounted for 21% of home sales in February, up from 18% from February 2023.

Region

In the country’s southern region, home sales are down 7.7% from February 2023. However, prices in the southern region have increased by 9.8% from January. The median home price in the southern region during February was $354,200.

As of March, the 30-year fixed rate mortgage average is 6.74%, up from 6.60% a year ago.

Atlanta Market Analysis

Median home price

The Atlanta median home sale price in March was $429,990, up 8.9% from March 2023. The median sales price continues to rise from its low of $400,000 at the beginning of the year.

Days on the market

The Atlanta average for the number of days homes were on the market in March was 35, compared to 43 days in March 2023. The average number of days homes are on the market is down 14.6% from the beginning of the year.

Supply

The Atlanta supply for March is 2.7 months, up 42% from March 2023. A healthy market has 4-6 months of supply, so Atlanta still has significant supply challenges. It is also below the national average of 2.9 months.

Home sales

Atlanta home sales in March were down 22.5% from February 2023 but up 38% from the beginning of 2024.

Likewise, sellers are starting to step back into the market. Within the last several weeks, I’ve had two new properties come on the market in desirable areas: a one-bedroom, one-bathroom condo at the Mayfair Tower and a two-bedroom, two-bathroom condo at Lennox Green.

Conclusion

Home prices in Atlanta are stable, and buying and selling interest has picked up significantly despite historically high mortgage rates. I believe that the Atlanta market will continue to have a resilient and positive 2024 as we move into a busier season. However, we are still in a supply-challenged environment both nationally and locally, so I do not anticipate any significant fluctuations in price in the near future.

As of now, there are many attractive buying opportunities available in select areas of the Atlanta market. It is important to act quickly on these opportunities, as I am seeing properties moving faster than they have in 20203.

To ensure that you find the best home for your needs, it is essential to work with an experienced realtor, such as myself. If you are ready to buy or sell a home, please do not hesitate to contact me.

Why Trilith Development Stands out In Georgia Real Estate

If you have not heard about Trilith, I will put it on your radar today.

The Trilith development is becoming one of the state’s most sought-after residential planned communities. Located in Fayetteville, It is a model for innovative urban planning. As such, it has become an amazing community with architecturally beautiful homes and a burgeoning hub for the film and soccer industries.

In this post, I will share with you what makes Trilith one of the best options when considering residential communities in Georgia.

Atlanta Market Trends for 2024

With stabilizing interest rates, buyers and sellers are beginning to step back into the Atlanta market. In December, there was a 3.4% increase in monthly sales in what is typically a slower month. While the numbers for January are not in yet, I do expect to see another increase as, anecdotally, I have participated in an increase in client activity.

Now that we can anticipate stabilizing markets, we can forecast some key trends that may play out here in the Atlanta residential real estate market. These trends can help buyers and sellers make educated real estate decisions in 2024.

Below are four trend predictions for 2024.

January 2024: Quarterly Market Update

Since my last quarterly update, mortgage rates have been decreasing. This decrease has caused home sales declines to level out and increase in some cases.

Looking forward to 2024, I remain optimistic about the Atlanta real estate market. I believe that we will continue to see a moderate decline in mortgage rates, perhaps settling around 6% in the back half of the year. This decline should propel demand forward, leveling out prices.

Likewise, as you will see in the numbers, Atlanta is still in a constrained supply environment, well below the national average. This should help keep us in a stable local market in the near term.

Below, I outline the most recent data from a national and local market perspective.

Navigating the 2024 Atlanta Real Estate Landscape: Top Predicted Trends

2023 has been an interesting year in Atlanta residential real estate. Prices have remained stable, and inventory has remained low. Yet, the Atlanta population continues to grow, and while demand has been somewhat subdued, it is still one of the more resilient markets in the country.

As we approach 2024, I expect the real estate landscape in Atlanta to continue to evolve, reflecting changes in market dynamics, buyer preferences, and economic shifts. In this blog post, I’ll go into my top predicted trends for Atlanta’s residential real estate market in the upcoming year.

Continued Stability in Home Prices

2024 is set to have a continuation of relative stability in home prices. While specific neighborhoods may see modest increases, the overall market is expected to maintain median price fluctuations similar to 2023. This moderation is attributed to stabilizing interest rates, increased inventory, and increased demand, all leading to a balanced market.

As of October 2023, the Atlanta median home price is $420,000, up 6.3% year over year. Additionally, there are currently 2.6 months of supply, up 8.3% year over year.

However, if we see a sharp decline in interest rates in the back half of 2024, then I would expect a relatively sharp increase in demand, which could cause an increase in the median home price.

Demand for Walkable Communities

The year ahead will see a continued preference for walkable, amenity-rich neighborhoods. Areas like Midtown, Inman Park, and Kirkwood are in high demand due to their proximity to shops, restaurants, parks, and public transportation. This trend is driving developers to create mixed-use communities, blending residential, retail, and office spaces for a vibrant living experience.

Likewise, I expect to see continued demand for property in some of the more up-and-coming neighborhoods and developments that I have written about previously, such as Blandtown and Centennial Yards.

Robust Rental Market with Affordable and Flexible Options

Atlanta’s rental market is expected to remain strong, fueled by demand from millennials and Gen Z renters. Developers are focusing on new apartment buildings with amenities like fitness centers and co-working spaces. Flexible leasing options, including shorter terms and pet-friendly policies, are becoming increasingly popular.

Affordability remains a crucial factor, especially for first-time buyers in Atlanta. This is pushing demand towards more leases in the short term. Developers are responding by focusing on smaller, flexible, and energy-efficient units, enhancing value without compromising quality.

Leasing a condo in-town remains an excellent option for those looking to experience Atlanta urban living while either waiting for interest rates to fall or looking for a property. Last month, I wrote an article on the short-term benefits of leasing in Atlanta.

Likewise, I believe that the Mayfair Tower is one of the best values in luxury condos in Midtown. It has the perfect blend of location and amenities for an optimal experience of Intown living. You can see all of my Mayfair listings here.

Sustainable Development, Eco-conscious Choices, and Technology

Sustainability is becoming a key consideration in the Atlanta real estate market. Buyers and renters seek properties that prioritize energy efficiency and use environmentally friendly materials. Developers are responding with LEED-certified buildings and sustainable designs. Georgia is recognized as one of the top states for green building initiatives.

The demand for smart homes continues to rise, with buyers seeking convenience, security, and energy efficiency. New homes are being equipped with smart thermostats, voice-controlled lighting, and automated security systems while existing homes are being retrofitted with similar technologies. Expect this to be an ongoing point of differentiation when buyers are making decisions on their future homes.

Conclusion

The Atlanta real estate market in 2024 is set to be stable and perhaps somewhat dynamic, adapting to changing preferences and market conditions. These trends highlight the city’s ongoing growth prospects, distinctive character, and innovative spirit.

Looking beyond 2024, Atlanta continues attracting new residents and businesses, and the demand for quality housing options remains strong, paving the way for a vibrant and forward-looking real estate sector.

If you are interested in getting a head start on 2024 with a new home, please do not hesitate to contact me.

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