Changing Seasons - Changing Markets9/27/2023
Fall is here and the seasons are changing. And so is the housing market. Since 2020 the Atlanta real estate market has literally been on fire. As we enjoyed low mortgage interest rates, we have seen home values sky rocket. New Case-Shiller data released this week shows that over a 3 year period (July, 2020 – July, 2023) home values in Atlanta are up almost 50%.
What this means is that a $400,000 home 3 years ago would be worth $600,000 today. Now you can’t draw a straight line between those two values. There are numerous factors that impact home values – schools, neighborhoods, traffic, amenities, buyer demand, interest rates, etc. So while homes in one area of town might have appreciated almost 50%, homes in other areas might have increased in value by 35%.
Every home is unique and, just like the show Antiques Roadshow, it really takes an expert to help determine value. Here is a list things that are important to know about the current real estate market in Atlanta.
- More home owners have had to reduce their initial list price in order to attract a buyer interested in making an offer on their home. In fact, between 35% - 40% of sellers have had to reduce their list price.
- In the Spring/Summer months earlier this year, more than 40% of homes were selling above list price. Currently that percentage is hovering around 30%.
- Total Days on Market (TDOM) have increased in recent weeks. Depending on price point and location, that average has creeped up to 8-10 weeks. With the increasing length of time on market the current month’s supply of homes has doubled in many areas.
- What this means is, as we enter the 4th quarter of the year, we are approaching a balanced market between buyers and sellers. Most real estate professionals agree that a balanced (healthy) market is between 4-6 months of available inventory.
- For homes priced over $1 million, the TDOM is averaging 2.5 – 4 months on the market, and the total month’s supply ranges from 5.3 months (Forsyth) to 8.2 months (DeKalb) to 13 months (Cherokee).
The real estate market is often described as “pendular”. And it seems that, at least for now, the market is swinging back to favor buyers. What is driving this change? Some of the change is simple seasonality of the market. As we move deeper into the Fall, sales historically drop off. Higher interest rates cannot be overlooked. They have certainly played a role in accelerating this development.
What’s the bottom line? The real estate market is always fluid. Whether you are interested in buying or selling, or simply want to get a better understanding of your home’s current value, it is essential to have a professional by your side. Give me a call (770-366-3406). I’d love to talk.