No matter who you talk to in Atlanta real estate, they’re looking forward to a strong 2022 – and with good reason. The BeltLine and Westside Park are attracting homebuyers, the city is drawing new industry, and housing remains comparably affordable.
“All current signs point to 2022 being another good year for real estate in Atlanta,” said Carolyn Calloway, Senior Marketing Consultant, Harry Norman Realtors Buckhead Office. “Contributing to this positive outlook is the continued imbalance of supply and demand. Inventory remains historically low, and buyer demand is fueled by low interest rates.”
Atlanta is the No. 7 metro in the U.S. for net migration, and the pace of growth for Atlanta is currently third in the country, she said. “Combine those factors with good employment opportunities and we should see continued strong interest in home ownership which will support a strong housing market in 2022.”
Avery McMahon, Senior Vice President – Managing Broker, The Harry Norman, Realtors Intown Office anticipates that the market will stay hot for a very long time. “Though our home prices are continuing to increase, we are still an affordable city compared to other major markets,” she said.
She reported that Atlanta prices increased 21.2% year-over-year (YOY) in September, according to the latest S&P CoreLogic Case-Shiller Indices, breaking the previous record annual gain of 20.8% set in April 2013. “Now is still a good time to buy because prices are going up, and it’s a great time to sell as well. I personally did both in 2021!” McMahon added.
Jason Cook, Agent, Ansley Real Estate, is also optimistic. “People are moving here from other places in the country. Atlanta is still a good deal, as far as the housing market,” he said. “Our city is drawing a lot of people and companies from around the country. People from New York or California don’t blink at a $1 million price tag for a home, which is great for us.”
The 2022 real estate market in Atlanta will outpace 2021, according to reports reviewed by Valerie Levin, Managing Broker, Senior Vice President, Berkshire Hathaway HomeServices Georgia. “So many people have moved here from California and New York City because of the opportunity, hospitality and easy living.”
Levin said that listings priced at fair market value are subject to multiple offers and selling for thousands over list price. “My heart goes out to the buyers in this market as well as the agents representing them. They are working harder than ever to service their clients.”
More homes needed
Intown real estate professionals all have the same wish for the new year: more homes available to their buyers.
According to Patti Junger, Realtor / Associate Broker, Dorsey Alston Realtors, a lack of inventory will continue to be a problem in 2022. “New listings are down 5.2% year-to-date in metro Atlanta, while the number of sales is up nearly 20%,” she said.
The trend is holding across every submarket, including Buckhead, Intown and Sandy Springs. “We currently have less than two months of inventory in almost every submarket in metro Atlanta, where six months of inventory is considered a balanced market,” Jungers added. This indicates that 2022 will be a seller’s market as low inventory pushes prices upward.
Bill Murray, Senior Vice President / Managing Broker, Berkshire Hathaway Home Services Georgia Properties Buckhead Office, also stressed the low level of inventory. “The First Multiple Listing Service (FMLS) reports the November level at 1.3 months; that’s down from 1.5 months in July,” he said.
He added that the Average Days on Market has been at 10 days or less since February 2021 and is reported as eight days for November 2021. Closed sales have continued down since August, too. All of this is fueled by Atlanta’s low inventory, Murray explained.
“A big problem is that the largest buying segment is first-time homebuyers,” he said. When first-time homebuyers purchase a property, they remove it from the existing inventory without adding anything. Retirees looking to downsize, on the other hand, usually add to the inventory by selling their previous home.
In addition to the BeltLine and Westside Park, other areas are drawing homebuyers.
“We think anything around the BeltLine will continue to be hot this year. Summerhill, obviously, but that is spilling into Chosewood Park and Mechanicsville,” said Angie Ponsell. She and Shannon Parkerson are Realtors with Ponsell Luxury Group, Keller Williams.
“We are continuing to see big mixed development projects such as The Commons in East Point. The Kourtney at Yates Road south of the airport will be a 55+ community with retail and wellness services, and a residential component is being added to The Works on the Upper Westside,” added Parkerson. Buckhead’s luxury condo market is also bringing in new projects such as The Dillion, planned for the Peachtree Battle Area.
“Of course, Intown is still extra hot, with neighborhoods like Morningside, Buckhead, Ansley Park, Virginia Highland, Inman Park and Old Fourth Ward,” Cook said. “Intown, which is mainly my market, has some condo developments in the works, and they’re more high-end.” He named The Roycroft as an example.
“The Tri-Cities Area: East Point, College Park and Hapeville is growing faster than we can keep up! This area is still relatively affordable and the access to the airport cannot be beat,” said McMahon. She recommends keeping an eye on The Commons, an $111 million development in East Point with commercial, retail, residential, greenspace and public art.
Levin said that one of her favorites is “the award-winning Trilith development in Fayetteville designed for the film and creative industries which continues to boom in Georgia.”