We are excited to release our 2018 Atlanta Mid-Year Market Report. This report focuses on the real estate market inside the perimeter. Overall, the Intown Atlanta real estate market continues to be strong. Much of what we are experiencing is being driven by low inventory, and we are starting to see a decrease in overall sales because of the lack of inventory.
- The total number of sales in the first half of 2018 is down slightly from last year, the days on the market (time to sell) is less than mid-year 2017, and prices are up overall. Generally speaking, sellers have the upper hand in this market and buyers are competing for the inventory available. Move-up buyers are “stuck” with nowhere to go, so are not selling, which is impacting the inventory.
- Affordability is a big issue inside the perimeter, and the lack of new affordable housing is a challenge that concerns us. The lack of condominium inventory, due to lack of building in this cycle, is becoming a real challenge for buyers looking to purchase. Due to these conditions, we have seen a price increase of more than 10% in this condominium and townhome sector of the intown market over this period from last year.
- The beltline is creating massive demand in real estate. We have seen this around the Eastside trail over the past few years. We experienced explosive growth in the areas of Southwest Atlanta with a 30% increase in median sales prices from this time last year. This trend is continuing, and we are experiencing a trend in reinvestment in these neighborhoods in the core of our city.
In general, it is a seller’s market with low months of inventory available. For example, a balanced market is about 4-6 months of inventory. Buyers are continuing to compete for homes at the entry point in all markets. One exception is the luxury portion of the market ($1,000,000+) where there is more inventory and buyers have the upper hand. In many of the markets featured in this report, there are two markets at play—the entry point and the top of the market. If these markets were broken out, it would show that the top portion of the market is impacting days on the market and the days on the market for the entry point is well under one month. It’s important to understand the dynamics at play when reviewing these statistics.
Be sure to check out the full 2018 Atlanta Mid-Year Market Report here for more info on how the market performed in the first half of the year.