Atlanta Housing Market Through May '23

The Atlanta housing market enjoyed a relatively strong first few months of 2023. Despite the hysterical click bait headlines from the national media, this market is not crashing and there is no reason to expect it will. A May 2022 to May 2023 look at key Atlanta housing market indicators demonstrates what we professionals saw; an adjustment to rising rates followed by a recovery.

Recovery in the sense of acclimation to the rate change and continued inflation. The interest rate bumps clearly reduced overall numbers but the remaining buyers tend to be more seasoned and appear to have adjusted. Sellers, while still in control, cannot simply put a price on a home and expect multiple offers. Competition remains in areas but sellers must be more accurate or risk becoming stagnant and stale.

Atlanta Area Home Prices

No price collapse in this market
List and contract prices are up
Spring ’23 prices rebounded from later ’22 lows
Sellers remain in control but over list is not the norm
The Atlanta market remains more stable than others, largely level YOY

Home Absorption Rate in Atlanta

% of homes sold - down 7.7% YOY
% of homes contracted - down 8.1% YOY
Significant drop Q3-Q4 ‘22
Strong rebound Q1-Q2 (to date) ‘23
Interest rates, inflation, inventory remain challenges

Days on Market Around Atlanta

Closed Days on Market 0-90 -2.4% YOY
Closed Days on Market 91-180 +52.8% YOY
Closed Days on Market 181+ +11.2% YOY
76.5% of homes closing 0-90 days in 5/23 shows quality inventory selling vigorously
Marginalized, overpriced, unappealing homes are sitting

Housing Supply in Atlanta

0-3 months favors sellers, 3-6 balanced, 6+ favors buyers
Months of supply is up marginally YOY
Still under 2 months indicates it remains a seller’s market
The rise is likely due to the marginalized, overpriced, unappealing homes sitting
Expect this to stabilize at 2+- into the later ‘23

Homes Sold Around Atlanta

Numbers for all categories are down
Sellers chased the market as rates increased
Active listings in ’23 have been largely stable
Contracts and closed sales generally level since Mar
Usual seasonal slow down expected later July-Aug

The greater Atlanta housing market did not collapse over the last year and isn't expected to collapse any time soon. Don't swallow the nonsense pushed by the main stream media, it is disingenuous and misleading to universally judge real estate markets; every single one is different. Atlanta real estate markets like Roswell and Marietta, experienced the interest rate shock, adjusted, and got back to it. Inventory is the driving force at this point, most owners are not giving up those low rates unless absolutely necessary. We'll see where things go...and we'll keep you posted.

Posted by Hank Miller on June 14th, 2023