Atlanta’s real estate market has been slowed a bit by higher interest rates, but the city’s reputation as a good place to live and do business keeps the homebuyers coming, according to local real estate professionals. In desirable areas like Buckhead, Brookhaven, Dunwoody, and Sandy Springs, low inventory has become the norm due to high demand.
Monica Parker
According to Monica Parker, Sales Associate, Berkshire Hathaway HomeServices, the real estate market in some of Atlanta’s prime neighborhoods continues to be strong and stable as it comes off the highly robust few years, 2020 to 2023.
“In 2023, the rise in interest rates roused a closer look at buying and selling and created a home lock situation. We saw the fourth quarter of 2023 significantly slow down and then pick back up in early 2024,” she said.
Parker shared some detailed market information for April 2024.
- In Buckhead, new listings were up 38.5% from April 2023 and closed sales increased 6.7%.
- In Brookhaven, new listings were up 49.4% and closed sales went up 28% year over year.
- In Dunwoody, closed sales were down 26.8% since the same period in 2023 and new listings were up 88%.
- In Sandy Springs, closed sales were up 10.2% and new listings were up 13.8% from April 2023.
Elise Baumann
Elise Baumann, Real Estate Professional, Associate Broker, Atlanta Fine Homes Sotheby’s International Realty noted that the real estate market has remained robust as we’re moving into the summer season.
“Overall, the current interest rates are not deterring homebuyers who need housing,” she said. “The current buyer pool, regardless of price range, are strong buyers who are well qualified. While the current interest rates may exclude certain buyers from the market, …homes that are well-priced continue to sell efficiently.”
Amy French
“Atlanta was just named the sixth largest metropolitan area in the U.S., according to the new census data so, needless to say, growth is real in all of these areas and demand is high,” said Amy French, Real Estate Agent, Ansley Real Estate | Christie’s International Real Estate.
“We saw a fast and furious first quarter with a slight slowing in second quarter,” she continued. “With that said, we are still seeing bidding wars and competition for those move-in ready homes that are priced right. Atlanta will always be different temps of HOT.”
French said that higher interest rates have affected the number of buyers making offers. “Instead of five, six, seven offers, we may see two or three,” she explained. “Whether it’s two or 20 offers, it still creates multiple offer scenarios and creates that competitive atmosphere for buyers.”
Low inventory
Low supply and high demand make it a great time to be a seller in the real estate market, French noted. “We have people moving to these hot areas from all over the world, with job opportunities and a desirable lifestyle here,” she said.
Atlanta has been experiencing low housing inventory since before 2020. “What we used to call an ‘inventory crisis’ is now the norm because of our growth and being one of the most desirable cities to live in the Southeast,” she added. “I do not see that changing and so I do not see inventory dramatically increasing any time soon.”
Parker agreed with the scenario. “Current indications present tight inventory to be expected for the near future and thus will support housing prices to remain steady and strong in these markets,” she said.
Baumann also concurred. “Given the current beat of Atlanta’s market the past few years, I believe it will take years for inventory to increase. I’ve read many different predictions from experts on inventory increasing since this issue began in 2020, and none of them have been correct,” she said.
The key for homebuyers in the market is to be well represented by a seasoned and well-connected realtor. “That’s the best way to get access to off-market properties, see homes quickly and be up to date in what makes a competitive offer,” Baumann advised.
Moving forward
Baumann said she’s eager to see how the market performs in the second half of the year. “I believe well-priced homes, regardless of their price range, will continue to sell efficiently, with savvy buyers who understand the market seizing these opportunities,” she predicted.
According to French, interest rates are expected to start trending down, causing activity to increase significantly across the market. “In any kind of market in Atlanta, if you price right and have a great product, you will do well as a seller, regardless of the rates, because of the low inventory,” she said.
“Additionally — I cannot reiterate this enough — you can refinance your rate when they drop, but you cannot go back and pay less for a house,” French stated.
At the end of last year, the Terry College of Business at Georgia Tech hosted the annual Economic Forecast for 2024. Parker noted that the overall Georgia economy is better in many aspects than the nation’s, as reported by Dean Benjamin Ayers of Georgia Tech.
Additionally, Dean Ayers reported that Site Selection Specialists identified Georgia as the #1 state to do business for 10 straight years. “Bringing it home to Atlanta, 31 Fortune 1000 headquarters are in our Atlanta metro area … As industry thrives, the housing needs remain strong,” Parker said.
Home Sales Statistics for April 2024
Covers the Buckhead, Brookhaven, Dunwoody and Sandy Springs area (all zip codes)
Homes for sale: 676 units, up 15.4% from previous month, up 56.8% from previous year.
Homes closed: 244 units, no appreciable change from previous month, up 7.5% from previous year.
Homes placed under contract: 229 units, down 10.2% from previous month, down 11.6% from previous year.
Months of inventory based on closed sales: 2.8, up 16.7% from previous month, up 47.4% from previous year.
Statistics from Trendgraphix, provided by Monica Parker, Berkshire Hathaway HomeServices
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