Atlanta Real Estate Market Update

2024 Mid-Year Update: Inventory Surpasses Pandemic Peak

For the first half of 2024, the greater Atlanta metropolitan area followed its typical residential trend. The market usually sees sales activity slow in the winter and starts to accelerate in the spring, with a peak around May and June.

But the biggest news in the Atlanta housing market thus far has been the growth in active listings.

Sales Slowdown

True to form, the year began with 3,961 residential units selling in January and peaked in May at 7,018. Sales dropped in June to 6,101. For the month, there was a 15% year-over-year slowdown. However, national home sales also trended downward in June 2024 after the Federal Reserve opted not to lower its absis rate. That hit consumer confidence, as many experts hoped the mortgage market would start seeing lower interest rates by the year’s midpoint.

The total number of sales, while slower than in 2023, is generally very close to where the Atlanta housing market was in 2023. It’s still below the pandemic-era market, when home sales peaked at 10,273 in July 2020.

Sale Prices Rise

Meanwhile, the median sale price for Atlanta homes continues its upward march. Year-over-year price increases have been consistent each month. By June 2024, Atlanta homebuyers paid a median of $414,000 for a house, a 4.81% bump from June 2023. In the central 12-county Atlanta core, median home prices were at $416,000.

Fulton County maintained high prices, with a July 2024 average of $777,606. It had 2,780 active listings and the region’s highest list price at $876,971. Meanwhile, Gwinnett County averaged $521,025 with 1,967 active listings. To the east, DeKalb County home buyers paid an average of $513,996. It had 1,757 listings as of July 2024. Cobb County reported an average of $566,890 with 1,368 listings.

Inventory Grows

Between slower home sales and a bump in new listings, the active inventory is up 58%. It’s now above the April 2020 peak.

The month brought the increase in inventory to 3.49, showing that Atlanta is moving closer to a balanced market. Still, the majority of homes were under contract within 30 days on market. Even though prospective buyers now have more homes to shop, pricing still favors the sellers. Greater economic conditions are slowing demand for housing, such as the sustained high mortgage rates.

2023 Year-End Review: Prices Kept Rising in 2023

Demand for living in Atlanta continues, considering that the area added 1.42% more residents in 2023. That population growth keeps pressure on the cost of housing in metro Atlanta, and the year-end report indicates that’s the case. The city has already been named a top “hot” real estate market for 2024, and the 2023 housing report shows demand keeping Atlanta home prices growing.

Inner Atlanta Metro

In December 2023, the greater Atlanta metro reported a median sale price of $400,000, up 3.2% from the prior year. Early indicators for January 2024 place the median sales price at $385,000. 

At the same time, the available number of homes for sale dwindled to 10,273 units. That’s 7% less year-over-year. Inventory doesn’t look like it will improve anytime soon, as new listings were down almost 30% from November 2023. 

Atlanta closed the year with a 2.3-month supply of housing inventory. January 2024 reported 11,118 active listings across the core counties, of which 6,673 were new listings. It’s a sign the most desirable homes are lasting only a short time on the market. 

The inner Atlanta metro includes 11 counties: Cherokee, Clayton, Cobb, DeKalb, Douglas, Forsyth, Fulton, Gwinnett, Fayette, Paulding, and Rockdale.

Greater Atlanta MSA Housing

The wider Atlanta metro spans 29 counties in north-central Georgia. Here, the median sale price in January 2024 reached $374,900. That was a 7.11% bump from last year’s $350,000. In good news for home buyers, new and active listings increased YOY. Even from December to January, new listings had a monthly increase of 53%, providing more choices on the market. Of course, how much depends on where you are looking for a home in the metro. 

The wider Atlanta region had a 2.46-month supply of residential homes for sale, about the same as last year.  

Fulton County

This county includes the City of Atlanta plus the suburbs of Alpharetta, Sandy Springs, and Fairburn. As of January 2024, the median price was $392,990, with 3,106 active listings. Although it reported more active and new listings than in January 2023, its median sales prices increased by 8.1% year over year.

DeKalb County

With 309 listings–just three more than the prior year–DeKalb’s average sold prices bumped up to $434,636 in January 2024. It had 1,148 active listings. DeKalb is west of the city core and includes suburbs like Decatur, Druid Hills, Dunwoody, and Avondale Estates.  The lower cost of housing is one of its attractors.

Cobb County

Cobb reported slightly fewer listings for January 2024. Like much of the central Atlanta metro, average home prices rose year-over-year to $491,989. That’s almost $50,000 more than January 2023. Cobb’s cities, including Marietta, Smyrna, and Kennesaw, cover the northwestern metro. 

Buying an Atlanta home

As you look for your Atlanta home, note that the real estate market is somewhat seasonal. Home sales and prices typically peak in the late spring and early summer months and are at their lowest around the New Year. Right now could be the ideal time to find your Georgia home. 

Buying an Atlanta home is also a good investment. The average rate of appreciation over the last five years has been 14%, well above the national average.

July 2023: Sales prices may be stabilizing this summer

Summer may be sizzling in the Atlanta metro, but it’s not exempt from the same economic pressures faced by home buyers and sellers across the nation. The market brief from the Atlanta Realtors® shows just that in its July 2023 data release. Like US national sales figures, the Atlanta real estate market experienced a continued drop in sales activity but stabilizing housing prices.

The Atlanta metro includes 11 counties in northern Georgia: Cherokee, Clayton, Cobb, DeKalb, Douglas, Forsyth, Fulton, Gwinnett, Fayette, Paulding, and Rockdale. This includes the City of Atlanta and central suburbs like Marietta, Gainesville, and Sandy Springs.

The Atlanta report

Available inventory was down across the Atlanta metro and, with it, closed sales activity. People simply aren’t listing their homes; the number of available units was down almost 21% year-over-year (YOY). The drop will likely persist as the month’s new listings were down 23% YOY and 10.4% month-to-month. 

That contributed to a closed sales decrease of 20%. As of mid-year, the greater metro market had a 2.1-month supply of inventory, a figure sustained from June 2023.

But if inventory is so low, shouldn’t median sales prices be adjusting downward to encourage more buyers? 

The metro median home sale price of $420,500 rose 0.1% YOY but was down by $8,000 from the prior month. Overall, the median sale prices reported over the summer indicate a stabilized market. Just enough buyers are still hunting for Atlanta real estate to prevent a dramatic decline in price growth. 

That’s good news for home sellers but not as much for buyers waiting for affordability to improve. Current market conditions still favor the seller.

The Atlanta Metro Real Estate Breakdown

The City of Atlanta had the number of homes sold in July 2023 tank by 84% year-over-year. It’s the lowest number of closed sales across the twelve months ending July 2023. Despite this, the median closed sales price grew 20% to $602,500.

The city’s most valuable estimated zip codes were:

30327 (Buckhead, Margaret Mitchell, Northside) $1,369,836

30306 (Virginia-Highland, Morningside-Lenox Hill, Druid Hill) $937,314

30342 (Chastain Park, Sandy Springs) $803,366