The nation has seen steady growth in the real estate market over the last 10 years. The metro Atlanta area has been on trend with that growth. Since the recession, most major cities have almost fully recovered to their pre-bubble housing prices. One major difference between then and now is the inventory. Houses for sale have been scarce. Metro Atlanta spans dozens of counties but with all that area covered, home buyers are still having to compete to find homes that meet their needs.
As the supply lessens, the demand increases as does the price. Atlanta, as well as the rest of the US has come into a strong sellers’ market over the past two years. With the continued population growth and more new construction in the metro Atlanta market, the number of homes for sale still dropped over 13% from 2016. That is a substantial when you look at the census numbers. It is projected by the World Population Review that the metro Atlanta are will be pushing 8 million people by 2020. Currently, the population sits just under 6 million. With a 2 million person increase in the next two years, a continued drop in housing inventory will push the housing prices up.
The Atlanta is already seeing the effect from the influx in people. Since 2016, the median home sale price has gone from $161,000 to $201,000. The over 24% increase can be attributed to not only the limited supply but also the recent uptick in new construction. Immediately after the recession, new construction grinded to to halt and buyers were able to snatch up new or almost new homes at very low prices. New construction was still a gamble for most investors until about four years ago. Once the market began to stabilize, new builds popped up in suburban markets and fared well. They continued to spread to the intown and midtown area where space was at a premium. With the higher sale prices of these homes, Atlanta has seen a substantial increase in the average home price.
Not only are the prices for homes rising in Atlanta, but the typical seasonal prices spikes have started to expand to the December. Over the last two years, December has been the month with the highest average for home sale prices. Ordinarily, one would see the summer month of May, June, and July with the highest sale prices. This makes for more flexibility among sellers trying to list their homes for top dollar.
With the mortgage rates remaining low and a large number of first time home buyers starting to enter the market, it is almost certain that Atlanta will continue to see much of the same trends going into the next year. If you are looking to dip your toe into the Atlanta housing pool, be sure to contact the experienced agents at Better Homes and Gardens Real Estate Metro Brokers for guidance. They have 26 offices all over the metro Atlanta area and will find you a great home. Call 404.843.2500 for more info about buying or selling a home in your area.