According to data just released from the Atlanta Board of Realtors and the Georgia Association of Realtors, the Atlanta residential real estate market continues its trend towards a strong & robust recovery. Though trouble looms in the form of very low inventory levels which threatens to stifle the momentum of a vibrant real estate market in Atlanta.
In February, we saw sales continue to increase…up more than 6% over the same period last year. The median sales price continued to increase with a jump of more than 4% over February 2015. The average sales price also rose over 4% to $273,000. While prices continued to rise, the average time to sell a property continued to decrease and is now less than 80 days on average.
In February, Atlanta had a total of 13,046 units for sale…and that’s the heart of our current problem. The number of available homes for sale continued to drop another 4% compared to the same period last year and we are now down to just a 3.0 month’s supply of homes for sale…which is critically low. A typical “healthy/ in balance” market would have a 5 to 6 months supply of homes for sale. Current home buyers are faced with very few quality choices and a constant “multiple offer” situation on the homes that they want. Mortgage interest rates remain historically low and the demand for homes is increasing each month, but the demand for housing has currently far outpaced the supply of homes with many homeowners not feeling the return to equity that they need to make their next move. The low inventory is further stressed as home builders have responded slowly to the pent up demand and what new construction is coming out of the ground tends to be at the higher price points above $500,000.
If you are a current home owner and considering a move in the near future but are unsure of your current home’s value, you might be surprised at how much your home has appreciated in the past 48 months. If you will send me an email to firstname.lastname@example.org, we will prepare a “no obligation” market evaluation on your home so that you can better determine if making a move now is right for you.