Is now a good time to sell your home? This can be a loaded question. The Atlanta real estate market is influenced by a variety of factors, including local appeal, employment rates, fresh construction, and mortgage interest rates. Berkshire Hathaway HomeServices Georgia Properties is experienced in real estate transactions within the greater Atlanta region and the state of Georgia. Here, we talk about the local market for informed real estate planning.
Supply and Demand
To understand the Atlanta real estate market, you must first understand supply and demand. Supply represents the number of homes available on the market. On the other hand, demand refers to the number of buyers looking to purchase property. The relationship between these two factors determines the strength of a market.
A buyers’ market occurs when there are more houses available than people to buy them. Real estate prices decline in hopes of attracting purchase offers, and homes often sell for less than listed. In contrast, a sellers’ market is when housing demand is higher than the supply. Sellers feel comfortable setting higher listing prices if there are more interested buyers than available homes. Competition may even motivate bidding battles to drive prices higher.
Factors to Consider
The balance between supply and demand depends on a variety of factors, from local appeal to national interest rates. At times, these factors may balance one another out. Other times, they may cause significant fluctuations in the market. Factors can also vary between locations. When evaluating the real estate market in Atlanta, these are the strongest elements to consider:
Area Appeal
When homeowners relocate, they consider their new area carefully. People want to live comfortably and close to work and amenities. Atlanta’s warm climate and culture, low cost of living, and excellent education make it an appealing option for a variety of demographics, from career-focused young couples to families raising children.
Employment Rates
A house is a significant investment. Mortgages, property taxes, and upkeep require one or more stable incomes to support. Fewer people can afford to own their own homes when unemployment is high. Atlanta’s unemployment sits at only 3.2%, below the national average. The presence of tech and Fortune 500 companies means high-paying jobs.
Builder Confidence
When planning new custom builds and developments, construction companies must weigh the demand against the cost of materials. High builder confidence reflects high demand but also increases the supply in turn. 2022 was a year of low confidence and few new constructions due to material expense. Fortunately, permits picked up once more in 2023.
Mortgage Rates
While some real estate sales are cash deals, many buyers rely on a mortgage for long-term payment plans. National interest rates for mortgages are currently high, with the average above 7%. Because interest significantly adds to the cost of homeownership, potential buyers are strongly motivated to wait until rates decline.
Atlanta Real Estate Market Trends
We’ve explored the factors influencing the Atlanta real estate market – but what does it mean? How do these factors add up? Luckily, local statistics can tell us a lot about how various factors have influenced housing sales. This is what Redfin tells us about the housing market as of January 2024:
- Inventory: 2.4 months of housing inventory is lower than the natural average but higher since last year. For reference, a balanced market – one where supply and demand are equal – requires about six months of inventory.
- Price: Home prices are higher than last year but still slightly below the national median – with the median listing price of a home at $410,000 and the median sale at $395,000. Homes often sell close to or slightly below the listing price.
- Days on the market: Most houses sell after 40 days on the market. While this period is longer than last year’s 34 days, it is not abnormally long.
Overall, market reports paint a picture of a stable market. There is an overall lack of supply, but this slight imbalance is not problematic. Inventory is slowly increasing to keep pace with rising demand without exceeding it. Purchase prices remain affordable. More importantly, forecasts are positive. Atlanta is home to a hot market with a strong base and little risk of collapse.
Let Us Help You Take Advantage of Today’s Market
The strength of Atlanta’s real estate market means that now is a fantastic time to sell your home. The low inventory and rising demand allow for fast sales and excellent sales prices. With high local appeal and increasing population, this demand is only expected to increase. Berkshire Hathaway HomeServices Georgia Properties uses advanced systems to sell more homes than any other Atlanta, GA, brokerage. Find a Forever Agentsmto learn about our process or to discover properties for sale in Atlanta and beyond.