The Atlanta Housing Market for September 2023, as reported by the Atlanta REALTORS® Association (ARA), unveils intriguing insights into the residential real estate landscape of the metropolitan Atlanta area. The Atlanta Housing Market witnessed a total of 4,371 residential sales, reflecting a decrease of 20.3% compared to the previous year. This statistic underscores the evolving dynamics of the market, signaling changes in buyer preferences and economic factors impacting demand.
Atlanta Housing Price Trends: Upward Trajectory
Notably, the Atlanta Housing Market continues to demonstrate robust price appreciation. In September 2023, the median sales price reached $410,000, showcasing a commendable increase of 2.5% compared to the same month in the previous year. Similarly, the average sales price soared to $502,000, marking a noteworthy 5.1% increase from the prior year. These figures underscore the resilience and growth potential of the Atlanta real estate market.
Supply Dynamics: A Balancing Act
Supply in the Atlanta area housing market reveals an interesting story. In September 2023, the total housing inventory stood at 11,252 units, indicating a 16.4% decrease from the corresponding month in 2022. New listings also experienced a notable decline, with a 17.0% drop compared to September 2022 and a 7.8% decrease from the previous month. The month's supply over a 12-month period increased to 2.4 months. This trend indicates a potential balancing of supply and demand, although it is still below the historical benchmark of a balanced market with a 6-month supply.
Annual and Monthly Comparisons
To offer a more comprehensive view of the market's performance, let's compare key metrics:
Total Home Sales: 4,371 (September 2023) vs. 5,481 (September 2022) – A 20.3% decrease.
Median Sales Price: $410,000 (September 2023) vs. $400,000 (September 2022) – A 2.5% increase.
Average Sales Price: $502,000 (September 2023) vs. $477,500 (September 2022) – A 5.1% increase.
Previous Monthly Comparison:
Total Home Sales: 4,371 (September 2023) vs. 5,190 (August 2023) – A 15.8% decrease.
Median Sales Price: $410,000 (September 2023) vs. $425,000 (August 2023) – A 3.5% decrease.
Average Sales Price: $502,000 (September 2023) vs. $515,500 (August 2023) – A 2.6% decrease.
These comparisons provide a deeper understanding of the market's dynamics, illustrating annual and monthly shifts in sales and pricing.
Largest Metro Counties Sales Comparison
- Cobb County:
- Total Home Sales: 707
- Median Sales Price: $416,000
- Average Sales Price: $487,500
- DeKalb County:
- Total Home Sales: 617
- Median Sales Price: $360,000
- Average Sales Price: $463,000
- Fulton County:
- Total Home Sales: 1,064
- Median Sales Price: $430,000
- Average Sales Price: $593,000
- Gwinnett County:
- Total Home Sales: 845
- Median Sales Price: $425,000
- Average Sales Price: $478,000
Expert Insights and Predictions for the Atlanta Housing Market
Atlanta REALTORS® Association President Michael Fischer emphasizes, “The metro-Atlanta housing market has seen the year-over-year median price and average price appreciation shrink over the last several months, to be more in line with historical averages. This counters the rapid surges experienced in recent years.” This observation reflects the evolving nature of the market and its movement towards a more balanced state.
Fischer further notes, “In another sign that our market is slowly moving back to more normal conditions, the month's supply of homes for sale has increased to 2.4 months inventory. Historically, 6 months of supply has been seen as the balance between a sellers and buyers market, so despite the gains, we are still a long way from reaching that balance.” This insight highlights the ongoing quest for equilibrium in the Atlanta Housing Market.
Furthermore, Fischer mentions, “The continued strong demand for housing in Atlanta is reflected by the median days on the market, which has remained consistent at 14 days this month.” This data underscores the enduring appeal of the Atlanta real estate market among buyers.
Note: The monthly sales and home prices for single-family residential properties were across 11 counties.
Overall, the Atlanta Housing Market Report for September 2023, as provided by the Atlanta REALTORS® Association, paints a dynamic picture of the real estate landscape in the metropolitan area. With key highlights in demand, prices, and supply, the market demonstrates both resilience and adaptability. As the market aims to strike a balance between supply and demand, it is evident that Atlanta's housing market continues to be a focal point for investors and homebuyers alike.
ALSO READ: Georgia Housing Market Forecast
Are Housing Prices Dropping in Atlanta?
The latest data from the Atlanta Housing Market Report for September 2023 indicates that, on a year-over-year basis, the median sales price in Atlanta increased by 2.5%. However, it's essential to consider the broader context. While there has been growth, it represents a slower appreciation compared to the rapid surges experienced in recent years. This suggests that the rate of price growth has somewhat stabilized.
Additionally, there was a slight decrease in the median sales price when comparing September 2023 to August 2023, with a 3.5% drop. The average sales price also experienced a 2.6% decrease over the same period. These monthly fluctuations could be indicative of market adjustments.
Annual Market Forecast: Atlanta Housing Market
According to the National Association of Realtors, Atlanta is expected to be the top real estate market in 2023. Among the 179 metro areas analyzed by NAR, it was the only one to meet all 10 indicators such as housing affordability, employment conditions, and population growth. The Atlanta metropolitan area continues to be more affordable than the majority of U.S. regions, with more than 20% of renters able to afford an average home purchase, according to a report.
The job market is healthy, with Apple, Microsoft, and Visa among the major West Coast tech corporations opening offices. Consequently, the region experiences huge migration gains and rapid population growth, leading to a surge in housing demand. According to the Atlanta REALTORS® Association, it is still a seller's market, so sellers who have waited or are prepared to sell can still realize profits over the previous year.
Is It a Good Time to Buy Houses in Atlanta?
The decision to buy a house in Atlanta depends on various factors, including your personal circumstances and long-term goals. Here are some key considerations:
- Market Conditions: The Atlanta housing market is showing signs of stability and is moving towards a more balanced state, with an increase in the month's supply of homes. This can provide opportunities for both buyers and sellers.
- Pricing Trends: While prices have continued to appreciate, the rate of growth has slowed. This may be a positive sign for potential buyers, indicating a possible reduction in the competitive pressure on prices.
- Interest Rates: Keep an eye on mortgage interest rates, as they play a crucial role in affordability. Low-interest rates can make buying more attractive.
- Personal Financial Situation: Evaluate your financial readiness for homeownership. Consider factors such as your credit score, down payment, and ability to manage mortgage payments.
- Long-Term Goals: Think about your long-term plans and how buying a home fits into them. Atlanta has diverse neighborhoods, and it's important to choose a location that aligns with your lifestyle and future plans.
Atlanta Rental Housing Trends
About 50% of the households in Atlanta, GA are renter-occupied. Atlanta rent prices plunged during the most severe period of the coronavirus outbreak when much of the city’s economy was locked down. It is supposed to have ended eight years of steady rent growth in the Atlanta housing market. Average rents were down 2.2% from March through May for the entire metro Atlanta market. The declines were sharpest in areas of Buckhead, Lindbergh, and Emory, Midtown but the suburban markets did not suffer much.
But the latest market reports show a fast pace recovery from the effects of the pandemic. According to Realpage.com's analysis, there's been a record apartment demand in Atlanta. The whole Georgia market claimed the nation’s top spot for apartment demand. Atlanta’s 3rd quarter demand tally of 9,008 units accounted for 87% of the market’s annual absorption in the year-ending September.
The Zumper Atlanta Metro Area Report analyzed active listings across the metro cities to show the most and least expensive cities and cities with the fastest-growing rents. The Georgia one-bedroom median rent was $1,299 last month. Alpharetta was the most expensive city with one bedroom priced at $1,920 while Rome ranked as the most affordable city with one bedroom priced at $810.
The Fastest Growing Cities in The Atlanta Metro Area (Year-Over-Year)
- Rome had the fastest growing rent, up 35% since this time last year.
- Decatur saw rent climb 15.3%, making it the second fastest growing.
- Athens was third with rent jumping 13%.
The Fastest Growing Cities in The Atlanta Metro Area (Month-Over-Month)
- Rome rent experienced the largest monthly growth rate, up 6.6%.
- Alpharetta saw rent climb 6.1%, making it second.
- Kennesaw was third with rent jumping 5.3%.
Atlanta Housing Market Forecast 2023-2024
Atlanta has been one of the hottest real estate markets in the country for years. It is also one of the hottest real estate markets for investing in rental properties. Population growth has had a positive impact on the housing market in Atlanta. Nearly 285,000 people moved to Georgia in 2019, according to the most recent data from the U.S. Census Bureau.
This migration has made possible the state's consistent ‘best state for business' rankings. Area Development magazine named Georgia No. 1 for business – for seven straight years (2014-20). Nine out of 10 Fortune 500 companies have operations in Georgia – and 18 of these have made Georgia their world headquarters.
Much of this migration is driven by the strong business environment in Atlanta and the relative affordability of the city. Its robust knowledge-based economic ecosystem attracts new talent to the city. The net migration has led to an ever-increasing demand for housing in Atlanta which cannot be met with the current pace of new construction.
The Atlanta housing market has a housing shortage which will continue to contribute to increasing prices. Atlanta home prices on average are less expensive than the national average. Despite being below the national average, Atlanta home prices have more than doubled since 2012, and are projected to continue increasing.
According to a report released by the National Association of Realtors in December, Atlanta will be the nation's leading real estate market in 2023. Atlanta topped the association's list of markets to watch in 2023 based on its performance in 10 key indicators, such as housing affordability, employment conditions, and population growth, relative to the national average.
The Atlanta housing market is a dynamic tapestry of trends and possibilities, and understanding its future trajectory is essential for both buyers and sellers. Let's delve into the Atlanta-Sandy Springs-Roswell area's housing market forecast, unveiling insights that provide a glimpse into what the coming months hold for this vibrant region.
Current Market Snapshot
According to Zillow, as of July 31, 2023, the average home value in the Atlanta-Sandy Springs-Roswell area stands at $374,163. This figure reflects a 0.7% decrease over the past year, signifying shifts in market dynamics that merit exploration.
Homes in this region are known for their swift movement, typically going pending in around 13 days. This rapid pace illustrates the high demand and competitive nature of the Atlanta housing market.
The 1-year market forecast serves as a valuable compass, guiding potential buyers and sellers. As of July 31, 2023, the forecast presents a promising 7.2% increase, indicating an anticipated rebound and growth in the near future. This projection underscores the resilience and attractiveness of the Atlanta-Sandy Springs-Roswell housing market.
An examination of sales metrics provides a deeper understanding of market dynamics. The median sale to list ratio, recorded as 1.000 on June 30, 2023, suggests that homes were sold close to their listing prices, reflecting a competitive market environment.
Of the sales recorded on June 30, 2023, 37.9% were sold over the list price, showcasing the demand-driven nature of the market. Similarly, 40.4% of sales were under the list price, highlighting the varied pricing strategies employed by sellers.
Time to Pending and Conclusion
The median days to pending, as of July 31, 2023, is 13 days. This statistic reinforces the swift pace at which homes are being sought after and acquired, underscoring the urgency and strong demand within the market.
Hence, the Atlanta housing market forecast showcases a blend of data points that offer insights into future possibilities. With an anticipated growth trajectory, competitive sales metrics, and swift pace of sales, the Atlanta-Sandy Springs-Roswell region remains a focal point for real estate activity. Whether you're considering buying, selling, or investing, staying well-informed about these trends will empower you to navigate the Atlanta housing market effectively and make decisions that align with your objectives.
Top Reasons To Invest In The Atlanta Real Estate Market?
Investing in the Atlanta real estate market offers a myriad of advantages and opportunities. Here are the top reasons why Atlanta is a compelling destination for real estate investors:
- Thriving Job Market: Atlanta is a major economic hub with a diverse job market. It's home to numerous Fortune 500 companies and has a booming tech sector, creating a consistent demand for housing.
- Population Growth: The city's population is steadily increasing, attracting both young professionals and families, further fueling the demand for housing.
- Cost of Living: Atlanta offers a relatively affordable cost of living compared to many other major cities, making it an attractive destination for those seeking quality housing without exorbitant price tags.
- Investment Opportunities: Investors can find properties at various price points, catering to both entry-level and luxury markets.
- Price Appreciation: Atlanta has experienced steady and sustainable home price appreciation over the years, offering the potential for long-term investment gains.
- Historical Performance: The city has weathered economic downturns well, with real estate values generally holding up even during challenging times.
- Varied Neighborhoods: Atlanta boasts diverse neighborhoods, each with its own unique character, catering to different preferences and lifestyles.
- Growth Potential: Some neighborhoods are undergoing revitalization, presenting opportunities for investors to benefit from future development.
Strong Rental Market
- Rental Demand: Atlanta has a robust rental market, driven by its transient population and a consistent influx of students and professionals.
- Income-Producing Assets: Real estate can be a reliable source of passive income, making it an appealing choice for investors seeking cash flow.
Quality of Life
- Cultural Attractions: Atlanta offers a rich cultural scene with world-class museums, theaters, and entertainment options.
- Education: The city is home to renowned universities and schools, making it attractive for families seeking quality education.
- Business-Friendly Policies: Georgia is known for its business-friendly policies and incentives, which can positively impact the overall economic climate and real estate market.
- Investor-Friendly Laws: The state's landlord-friendly regulations make property management more straightforward for investors.
These factors collectively contribute to Atlanta's status as a dynamic and promising real estate market, making it a compelling choice for investors looking to benefit from both short-term gains and long-term stability.
Remember, investing in the Atlanta real estate market can offer a wealth of opportunities, whether you're a seasoned investor or new to the world of real estate.