The Atlanta housing market reveals intriguing insights into house prices, trends, and migration patterns. According to Redfin, as of October 2023, the Atlanta housing market is displaying some notable dynamics. The median sale price for homes in Atlanta stands at $409,000, indicating a 6.0% decrease from the previous year.
Homes are spending an average of 31 days on the market, slightly up from 29 days in the preceding year. Despite the slight decrease in the median sale price, Atlanta's housing market remains competitive, with homes receiving multiple offers.
Atlanta is deemed somewhat competitive, with an average home selling for about 2% below the list price. The market is characterized by the average time a home spends on the market—31 days. For those seeking a quicker transaction, hot homes can sell for around list price and go pending in approximately 13 days.
Examining the sale-to-list price ratio provides further insights. The sale-to-list price for all home types in Atlanta is currently 98.1%, indicating that, on average, homes are selling for nearly the full list price. This ratio is a crucial metric for both buyers and sellers, reflecting the negotiation dynamics in the market.
Is Atlanta a Buyer's or Seller's Housing Market?
The current state of the Atlanta, GA housing market in October 2023 is characterized as balanced. This equilibrium indicates a harmonious relationship between the supply and demand for homes, creating a conducive environment for real estate transactions.
Median Listing Home Price: A Steady Upward Trend
According to Realtor.com, as of October 2023, the median listing home price in Atlanta, GA stands at $429.9K, marking a notable 1.2% year-over-year increase. This uptrend suggests a robust and resilient market, making it an opportune time for potential buyers and sellers to explore their options.
For those who gauge real estate value by square footage, the median listing home price per square foot in Atlanta, GA is $265. This metric provides valuable insights into the cost efficiency and spatial considerations for homebuyers in the current market.
Median Home Sold Price
The median home sold price in Atlanta, GA is $402.5K, offering a realistic view of actual transaction values. This figure is crucial for both buyers and sellers to make informed decisions based on recent market dynamics.
One key indicator of negotiation dynamics is the sale-to-list price ratio, which stands at 99.09%. Homes in Atlanta, GA, are generally sold for 0.91% below the asking price on average. Understanding this ratio empowers both buyers and sellers to navigate the bargaining process effectively.
Median Days on Market
On average, homes in Atlanta, GA, spend 43 days on the market. This crucial metric reflects the pace of transactions, with a trend that has seen a slight increase since last month but remains slightly down since the previous year. The median days on market chart visually illustrate this trend, offering a comprehensive view of the timeframes involved in property transactions.
ALSO READ: Georgia Housing Market Forecast
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 $1,298 last month. Alpharetta was the most expensive city with one bedroom priced at $1,890 while Rome ranked as the most affordable city with one bedroom priced at $860.
The Fastest Growing Cities in The Atlanta Metro Area (Year-Over-Year)
- Rome had the fastest growing rent, up 21.1% since this time last year.
- Athens saw rent climb 18.9%, making it the second fastest growing.
- East Point was third with rent jumping 13.5%.
The Fastest Growing Cities in The Atlanta Metro Area (Month-Over-Month)
- Athens rent experienced the largest monthly growth rate, up 5.9%.
- Smyrna saw rent climb 4.8%, making it second.
- Cartersville was third with rent increasing 4.2%.
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 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 average Atlanta-Sandy Springs-Roswell home value is $372,813, experiencing a modest increase of 1.0% over the past year. Homes in this area are moving swiftly, going to pending status in approximately 18 days. This data is reflective of the market conditions as of October 31, 2023.
Key Market Metrics:
- +1.0% 1-year Market Forecast (October 31, 2023): Zillow predicts a positive outlook with a 1.0% increase in home values.
- For sale inventory (October 31, 2023): There are 20,641 homes listed for sale as of the end of October 2023.
- New listings (October 31, 2023): The market has seen 7,020 new listings during the same period.
- Median sale to list ratio (September 30, 2023): The ratio is recorded at 1.000, indicating a balanced market where homes are generally selling at their listed price.
- Median sale price (September 30, 2023): The median sale price stands at $368,583.
- Median list price (October 31, 2023): Sellers are listing their homes at a median price of $387,633.
- Percent of sales over list price (September 30, 2023): 32.4% of sales have been made over the listed price.
- Percent of sales under list price (September 30, 2023): 45.2% of sales have closed under the listed price.
Addressing Market Concerns:
Are Home Prices Dropping?
Based on the available data and Zillow's 1-year Market Forecast of +1.0%, there is currently no indication of a drop in home prices in the Atlanta-Sandy Springs-Roswell area. The market appears to be stable, with a modest appreciation in property values.
Will This Housing Market Crash?
According to the forecast and existing market conditions, there is no immediate threat of a housing market crash in Atlanta. The key metrics, including the median sale to list ratio and the percentage of sales over and under the list price, suggest a balanced and resilient real estate market.
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:
Economic Growth
- 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.
Affordability
- 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.
Steady Appreciation
- 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.
Diverse Neighborhoods
- 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.
Pro-Business Environment
- 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.
References:
- https://www.atlantarealtors.com/
- https://www.zillow.com/atlanta-ga/home-values
- https://www.atlantarealtors.com/Resource-Center/abr-market-brief.aspx
- https://www.gamls.com/statistics
- https://www.realtor.com/realestateandhomes-search/Atlanta_GA/overview
