Metro Atlanta Housing Market Summary (February 14, 2024)

Metro Atlanta Housing Market Summary (February 14, 2024):

Overall: The Metro Atlanta market is currently in a state of transition, showing signs of both cooling and resilience. Here's a breakdown:

Prices:

• Median sale price: $410,000 , up 6.5% year-over-year.
• Median listing price: $429,900 , up 1.2% year-over-year.
• Price growth slowdown: Prices have increased at a slower pace than previous years, suggesting a shift from the red-hot market of 2022.

Inventory:

• Low supply: Only 2.4 months' worth of inventory, significantly below a balanced market (6 months).
• Impact on competition: Limited selection keeps the market somewhat competitive, with homes receiving multiple offers.

Market speed:

• Days on market: Homes are spending slightly longer on the market compared to last year (31 days vs. 29 days).
• Sales speed: Despite the increase in days on market, homes are still selling relatively quickly.

Overall sentiment:

• Some analysts: Predict a possible stabilization or slight price correction in 2024.
• Others: View Atlanta as a resilient market with strong long-term potential due to its growing economy and job market.

• My opinion: Looking back at my previous predictions, I seem to be more inline with the current trend, that the big bank analysts for our local market. The Fed Funds Rate was being predicted by many analysts, to have multiple drops this year, starting now. My prediction in Q3/Q4 2023, was that we would not see any Fed Funds adjustments until closer to September 2024. The CPI will need to continue to its target rate, and jobs are still not feeling any pressure because of the current rate, so there is no reason to adjust. Thankfully I was correct, and it's not happening that quick or often, so we can still still keep lightly tapping the brakes on our local market to keep us closer to a normalized inflationary trend line, albeit I do not think this is a horrible thing. The 2022 hyper inflationary market was going to be unsustainable and if we look at a 30 year trend line of median home prices, we are just no going above that line. This slowing will cause a normalization in price inflation, and possibly some pull back in some sub markets with less demand. If that Fed Funds rate drops to much to fast, we may return to a bubble creation in the housing market with the wild west of real estate that was 2021-2022, (lots of real poor agents in that market period, that have thankfully gone elsewhere for their career choice)  W ho you work with matters. 
  

Important notes:

• This is a general overview, and specific neighborhoods within the metro area can vary significantly.
• It's crucial to consult with one of our real estate professional for personalized insights and advice tailored to your specific needs and goals.