Since my last update, the Fed has maintained a cautious stance on rate cuts, which has kept the 30-year fixed mortgage range bound between 6-7%. This cautious stance on rates is making for a subdued, if not balanced market both nationally and in Atlanta.
In December, the pending home sales index, a forward-looking indicator, fell 5.5%. This is an improvement from 2023 and fits into the seasonality of the market however, I am monitoring this for insights on sentiment as seasonality changes in the spring.
The good news is that this balanced market has allowed for more available inventory. There are currently some excellent properties to both buy and lease. Here is an example of my latest luxury home lease in Briarcliff Woods.
Overall, I am optimistic about the Atlanta real estate market in 2025. With our most recent Job growth rate at 4.1%, we are seeing a significant influx of people moving to Atlanta which is excellent for the 2025 real estate market.
Below is a detailed analysis of the national and local markets.
National Market Analysis
Median home price
In December, the national median home price was $407,500, the highest ever recorded. This is the 18th consecutive month of year-over-year price increases.
Days on the market
The national average for the number of days homes were on the market in December was 35, compared to 29 days in December 2023.
Supply
The national supply for December is 3.3 months, up 6.45% from December 2023, when it was 3.1 months.
Buyers
First-time buyers accounted for 31% of sales in December, up from 30% in December 2023. Investors and second-home buyers accounted for 16% of home sales in December, flat from December 2023.
Region
Home sales in the country’s southern region are up 9% from December 2023. The median home price in the southern region during December 2024 was $361,800, up 3.4% from December 2023.
Atlanta Market Analysis
Median home price
The Atlanta median home sale price in January was $405,000, up 8% from January 2024. The median sales price is 10% off its June 2024 high of $450,000.
Days on the market
The Atlanta average for the number of days homes were on the market in January was 52, compared to 44 days in January 2024.
Supply
The Atlanta supply for January is 3.4 months, up 47.8% from January 2024. A healthy market has 4-6 months of supply, so Atlanta still has moderate supply challenges, but we have surpassed the December national average.
Home sales
Atlanta home sales in December were down 1.1% from January 2024 and down 47% from the May 2024 high.
Atlanta has a good balance of supply and demand for this early in the year. Due to its location, economy, business environment, and population growth, Atlanta continues to be one of the most resilient markets in the country.
Likewise, as I said in the introduction, some sought-after listings have been coming on the market. Intown listings have been increasingly popular and moving fast due to the fair prices from previous years. One example is my listing of the beautiful designer loft in Midtown at 845 Spring Street NW, a high-demand building.
Conclusion
The Atlanta real estate market has gained more of a balance for buyers and sellers. Likewise, I am optimistic that the market will remain resilient in 2025 with the strong economy and job market.
Buyers can now find great opportunities in highly sought-after neighborhoods such as Midtown. The most important aspect is knowing where to look. 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.