Where Home Prices Are Dropping In Georgia for Summer 2023

Homes in Georgia were selling for slightly more in May 2023 than in May 2022 with a median sales price of $375,000. That still leaves wiggle room to find bargains in the Peach State, as not every market has rising home prices. So where are home prices dropping? 

Where are Georgia house prices falling?

The Georgia MLS has some interesting numbers between May 2022 and May 2023 that shed light on where the home buying activity is happening in the state. As a statewide baseline, the average home sale in May 2022 was $345,975 and May 2023 was $376,900, a sales price gain of $30,925. 

But the individual counties show stark differences. Sales price gains weren’t equal across the state with some reporting falling real estate prices.

One county with a stark dip in the opposite direction was Bartow County. Located between northwest of Atlanta and Marietta between Rome and Canton, its average listing sold price moved from $379,744 to $337,654, a $42,090 dip. Bartow, more of a populated area thanks to its proximity to the Atlanta metro, also provides a larger sample size, with a higher number of total homes sold in the Georgia MLS data than southern counties like Bacon.

Chatham County didn’t see a dip as stark as Barstow’s, but it is another larger county that showed a dip in home sale price data. There, the average sale price moved from $329,984 in May 2022 to $326,627 in May 2023. Notably, the county is one of Georgia’s coastal counties and where Savannah is located. Usually coastal real estate prices are higher, and having a larger city with deep roots should buffer real estate sales.

Rockdale County, part of the larger Atlanta metro and south of the city suburbs, also provides a significant enough sample size to feel confident in the data. The May 2022 average sales price of $329,408 declined to $316,741.

But these counties are bucking the trend of average price increases. Particularly among larger counties, home prices are still rising despite higher interest rates.

Local economic numbers hint where home prices may fall next

Forecasted home prices in Georgia have a sunny outlook. They note that the metropolitan statistical area (MSA) total economic forecast for Georgia shows there could be a modest rise in the economic activity in most regions heading into 2024. However, one Georgian MSA is expected to experience a decline: Tifton.

Tifton, nicknamed the “friendly city,” is expected to see a growth rate decline of 0.2% by March 2024. In a relatively rural area in south-central Georgia, Tifton is closest to other areas like Albany and Valdosta. The region presents a less urbanized section of Georgia’s that is highly reliant on agriculture for its economy, and with large swaths of land dedicated to cotton, peaches, pecans, and livestock.

For a home buyer looking for dips in home prices, areas like Tifton may not be a bad bet. A slowing economy trickles over into housing prices, signaling price gains may be slowing or reversing.

However, it’s also worth getting some context for Georgia’s rural regions.

• Tifton appeared on the list thanks to its expected 0.2% economic growth loss by the end of March 2024. That could be due to the city’s dependence on agriculture and how changing weather patterns affect crop yields.
• Douglas is expected to see a 0.9% decline in growth by March 2024. More of a manufacturing area, Douglas may feel the impacts of automation stagnating generate job demand. Douglas isn’t too far from Tifton.
• Moultrie is expected to grow, but only by 0.7% by March 2024. Once again, it’s part of the agricultural southern region, which may help explain some of the trends we see.
• Vidalia is closer to the coast in central Georgia, approximately halfway between Macon and Savannah. The city expects to see its economy expand just 1.2%, which may translate to falling housing prices if other economic factors come into play.

This data only refers to pure economic growth forecasts and not the housing prices themselves, but it’s worth watching. An expanding economy usually signals demand for jobs, which draws people into an area and puts pressure on existing homes. The reserve is true with a contracting economy. Understanding where the economic growth may factor in a state’s development can help you predict where home prices may be heading.

Georgia housing market follows national trend

May 2023 reported 14,283 homes sold in Georgia, a 4.1% decline in the year-over-year numbers. The median days on the market for a home leapt upward to 30, a 13-day increase. This trend matches Florida to the south, and much of the country: the number of homes sold are stagnating and days before contract are increasing. 

With interest rates high, market watchers report the higher mortgage rates are keeping more people in their homes. This, in turn, reduces the supply of homes on the market. But interestingly, these higher interest rates haven’t done much to stave off demand. There is still a robust millennial population looking to buy homes, which creates upward pressure on prices. 

While many counties in Georgia are driving up the state’s overall housing prices, there are still areas where the home prices have dipped. In some cases, like in Bartow County, those dips are substantial and can save home buyers thousands while still being close to more urban areas with in-demand jobs, schools, and entertainment.