The Greater Atlanta Real Estate is Slow Out of the Gate for '25

A January toe stub for the greater Atlanta housing market. We usually get out of the gate early around Atlanta but not so much this January. We in the field felt it, I was curious so took a look at the data…and it confirms what we thought. This is a stumble; this market will snap back, but we see a few reasons for this lackluster start.

I’m confident that a combination of factors impacted the January ’25 activity:

• Cold snap – Sounds dramatic (and it is) but the area had a couple of weeks of very cold weather and areas of snow and ice. That doesn’t play well in Atlanta
• Insurance Impact – Insurance costs are rising at insane rates. We’re seeing companies refuse policies on homes with “aged”  roofs, with recent claims, in “high claim areas” and with buyers that have had claims.
• Mortgages – mainly the interest rate sensitive, some can go from conventional to FHA but then have reduced options. Some that were FHA can try for subsidies or incentive programs but may encounter credit issues preventing a purchase. Underwriting and appraisals are becoming a challenge, especially with homes that need updating. The “90-day rule” for FHA buyers is also squelching opportunity.
• Buyer Agent Compensation – Again the lower price point is impacted the most as buyers on the edge may be hit with buyer agent compensation. Some buyer agents want guaranteed minimum compensation. Many sellers do not want to work with unrepresented buyers. The result is that some buyers are unsure how to navigate this change. Always use a buyer agent.
• Inventory – We’re balancing but new, quality inventory, remains low. The scrub, overpriced trash that sits will eventually sell but we continue to see sellers that think they have “the” one that everyone wants. Ehhhhh…listen to the market or get stale.

Atlanta is a stout market and this will improve. We usually see the “real” spring market begin around Valentine’s Day and there’s no reason to think we won’t have a strong rebound.

City of Atlanta (postal designation)

Very ho hum and meh for "Atlanta". Contracts and closings are the second lowest by week over the last six months. Look at the last two - let's blame that on the weather.

Fulton County, GA

Fulton County, GA turns in a yawner performance. Atlanta, Roswell, Alpharetta, Johns Creek, Sandy Springs....we expect much more here.

Cobb County, GA

A mixed bag for Cobb County, GA and none of it great. We need to see more out of Marietta, Kennesaw, Smyrna and those areas of West Cobb.

Gwinnett County, GA

Gwinnett County, GA seems to be hibernating. The Puxatawny Phil impression is not welcome, Lawrenceville and the like need to wake up!

No one is hitting the panic button for the greater Atlanta real estate market. That said, January was underwhelming and did not meet our expectations. We felt this, and the data confirmed what we saw in the field. As the weather warms and the quality inventory arrives, things will get back to normal. In the meantime, this is a great reminder to work with full time professionals!

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