Is It a Good Time to Buy a House in Atlanta?
4th Quarter 2021 Report
Recently, for the first time in 2021, home prices in Atlanta declined. But stats show that it’s still a sellers’ market and a hot market for buyers.
For months, homes prices in Atlanta soared, accelerating at an outrageous pace. Now, right before the 4th quarter of 2021, it looks like they’re finally slowing down.
Atlanta Home Prices: Stats for Summer 2021
According to a Re/Max report, $335,000 was Metropolitan Atlanta’s median sales price in August. However, it was $342,200 in July, which was a 2.1% drop. Georgia Multiple Listing Service reports a 0.8% decline in home prices within that one month’s span.
This was the first month-over-month decline in home prices this year. Yet, experts suggest this is nothing to worry about. Home prices usually drop in fall and winter. Then, they make a comeback in spring.
Atlanta Home Prices: Decline Is Normal
Therefore, the decline is not only normal, but it shows that the market is normalizing again after the pandemic of 2020. Supply and demand were so far off. There were very few houses on the market for sale, which sent prices soaring.
Now, although home prices across the country are still high, listings are also still in high demand. Yet, inventory is still low. Per Re/Max, the current market only contains a 1.3-month supply of listed homes.
They also report a year-over-year increase in prices at a whopping 17.5%, which is unusually high. When the market is ‘normal’ and ‘healthy,’ homes tend to appreciate 4% to 6% annually.
“The slight seasonal decline in home sales from July to August was countered by this being the second-highest August sales total in the 13-year history of our report. So, although we appear to be past the blistering summer peak, the market is still very active,” says Nick Bailey, President, RE/MAX, LLC.
What Caused the Low Supply of Listings?
There are multiple factors that all contributed to the short supply of homes on the market:
- Hot Market Buying – Some homeowners fear selling their homes during a hot market and not being able to buy something they love at a fair price
- Construction – Costs of land and building materials skyrocketed in 2020, causing supply chain issues, which lead to builders bringing projects to a halt
- Bidding Wars – Because we are in a hot market, bidding wars are common which can frustrate many sellers and buyers
- Sale Prices – Some buyers prefer to wait it out and see if prices decline before paying the exorbitant prices we’re seeing in 2021
So, Is It a Good Time to Buy a House?
Because the market is starting to normalize again, this is a great time to buy a house. But expect to deal with bidding wars. Some sellers are seeing dozens of offers on their listings within just hours of them going live on MLS.
Plus, interests rates are still at historical lows. This is great news for Atlanta homebuyers. It’s also outstanding news for ATL’s homeowners. Why? Because this increases your chances of finding a qualified buyer quickly.
Ready to Buy a Home in Atlanta?
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