Residential Real Estate Atlanta Market Update

Metro Atlanta real estate update for Monday, February 22, 2016

The Atlanta area is continuing to experience a strong surge & recovery in the area of residential real estate…but we face a serious dilemma with a shortage of available homes for sale.  Let’s take a look at January 2016 versus January 2015 according to data just released by the Atlanta Board of Realtors:

Sales of single family homes increased 3.3%

The median home price was $213,000 which represented a 9.2% increase

The average sales price increased 8.7% to just over $275,000

The average Days on market declined 6% to 80 days

Properties listed for sale dropped 6.8%

The supply of inventory dropped to just a 3.1 months supply  (this compared to a “healthy” market of 5 to 6 months supply)

While prices continue to increase at an impressive rate and sales activity is strong, the amount of new inventory being listed for sale is not keeping up with the demand.  Home sellers are experiencing terrific market conditions while home buyers are finding a serious lack of inventory and a very competitive environment…a classic “seller’s market”.

Taking a look at the 4 largest counties in metro Atlanta for January:

Gwinnett county had 537 sales with an average price of $231,000

Fulton country sold 495 properties with an average price of $391,000

Cobb county sold 475 properties with an average price of $277,000

Dekalb county had 384 sales with an average price of $269,000

Looking back at 2015 for the state of Georgia, the Georgia Association of Realtors reports that:

The price range of $150,000 to $250,000 showed the strongest activity with a 33%                     increase in sales over the previous year

Properties above $1 million showed the weakest demand with a 8.5% decrease in sales

On average, home sellers ultimately received 94.4% of their original asking price

The predictions for 2016 continue to be very optimistic for the Atlanta region with the only apparent obstacle being a critically low level of available inventory.  Should we see more home sellers decide to enter the market this year, we could see a very robust & active real estate market through the summer and fall months.

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