The real estate market is strong and we’re looking at a good setup going into the prime real estate season. While we did have a slowdown in new and existing home sales in February, we were still up significantly year over year. It seems the February slowdown was primarily influenced by the weather.
As we get into spring I expect the market to continue to strengthen. However, if you are a buyer be prepared to enter a competitive market. According to Redfin, 60% of homes faced bidding wars in February.
Below is the latest update from Q1 of 2021 for the national and Atlanta markets.
National Analysis
The median home price in February was $297,863, up 15.7% from February 2020.
The average number of days homes were on the market in February decreased by 71% from the same time last year. On average homes are remaining on the market for 10 days down from 35 days in February 2020.
Supply decreased by 56% in February compared to the same time last year. February supply was at 1.1 months, the lowest it’s been over the past 5 years. Homebuilders are working hard to keep up with demand but due to rising interest rates and materials costs, the homebuilder confidence index fell to a 7 month low of 82, still significantly higher than the same time last year.
Overall the national housing market has remained strong over the past year, I expect to continue this momentum. However, the rising prices will be challenging to navigate for buyers at the risk of getting priced out. This is why it’s important to work with a veteran real estate agent, who has a good sense of the local market.
Atlanta Market
Atlanta continues to see home prices outpace the national average. Median Atlanta home sale prices were up 16.3% in February, compared to the same time last year. The median home price in February was $314,000, well above the national median price. Comparatively, in February 2020, the median home price was $270,000.
The average number of days that Atlanta homes have been on the market in February decreased by approximately 71%, approximately 10 days, which is in line with the national average.
Supply significantly decreased in February, down 54% when compared with the same time last year. Atlanta has 1.1 months of supply, in line with the national average.
As home values in Atlanta top all-time highs, I still believe that the long-term growth story for our city is intact.
If compared with its peer cities in the US, Atlanta is a value, considering our growth and ranking as one of the top cities for business and careers. Atlanta has consistently grown employment, incomes, and population year over year. It’s also one of the top major cities for tech job growth which I believe is important for the long-term growth potential of the city.
Below are Kiplingers latest median home prices and affordability indexes (1 being most affordable) in comparable “hub” cities:
Atlanta, GA: $250,000, 4
Miami, FL: $302,000, 8
Washington, DC: $435,000, 8
Austin, TX: $340,000, 9
Denver, CO: $442,000, 8
Seattle, WA: $525,000, 9
San Francisco, CA: $930,000, 10
As you can see, compared with other prominent hub cities, Atlanta is an excellent value for long-term real estate growth opportunities.
Are you interested in buying or selling your home this summer? If so, please do not hesitate to contact me.