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.
