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.
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.
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.
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.
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.
Atlanta is expected to be the top real estate market in 2024. Among the 179 metro areas analyzed, 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. 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.
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.
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.
Keep an eye on mortgage interest rates, as they play a crucial role in affordability. Low-interest rates can make buying more attractive.
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. 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 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.
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.
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.
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.
Strong and steady is the name of the game in the Atlanta-Sandy Springs-Roswell housing market. Not only have prices remained unchanged in the area, but building permits and consumer demand have stayed largely stable, too – despite higher mortgage rates and other headwinds.
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