Atlanta Housing Market Trends and Forecast for 2024

Assessing the data, Atlanta's housing market currently leans towards a balanced scenario. The average homes selling for about 2% below the list price provide opportunities for buyers, while the presence of hot homes selling quickly at or above the list price indicates favorable conditions for sellers. Ultimately, whether it's a buyer's or seller's market can vary based on specific neighborhoods and property types.

Atlanta Housing Market Trends in 2024

How is the Housing Market Doing Currently?

In January 2024, the Atlanta housing market displayed interesting trends. According to Redfin, home prices experienced a modest decline of 1.4% compared to the previous year, with a median selling price of $360K. Despite this, the market is somewhat competitive, with homes selling in an average of 48 days, showcasing a slight improvement from the previous year's 56 days. In the same period, 412 homes were sold, reflecting a marginal decrease from the 423 homes sold the previous year.

Sale-to-List Price and Market Dynamics

The sale-to-list price ratio stands at 97.3%, marking a slight decrease of 0.2 points year-over-year. However, it's noteworthy that 16.0% of homes were sold above the list price, indicating a positive shift in the market, with a 0.7-point increase compared to the previous year. Additionally, homes with price drops constituted 25.9%, reflecting a 2.0-point increase year-over-year.

How Competitive is the Atlanta Housing Market?

Atlanta's housing market presents a competitive landscape. Homes, on average, sell for about 2% below the list price and go pending in approximately 48 days. Notably, certain hot homes can sell for around list price and go pending in a remarkably short period, as quick as 21 days.

Some homes in Atlanta attract multiple offers, underlining the competitive nature of certain segments of the market. This scenario further emphasizes the need for potential buyers to act swiftly in making decisions.

Are There Enough Homes for Sale in Atlanta to Meet Buyer Demand?

The data suggests that Atlanta's housing market is meeting buyer demand, with 78% of homebuyers looking to stay within the metropolitan area. Additionally, the migration and relocation trends from November '23 to January '24 reveal that 22% of homebuyers considered moving out of Atlanta, while 2% from across the nation searched to move into the city from outside metros.

Notably, New York homebuyers topped the list of those searching to move into Atlanta, followed by Los Angeles and San Francisco. This influx of potential buyers from various metros contributes to the overall dynamism of Atlanta's real estate landscape.

What is the Future Market Outlook for Atlanta?

Considering the current market dynamics and migration trends, Atlanta's housing market appears resilient. The 10% lower median sale price compared to the national average positions Atlanta as an attractive option for homebuyers seeking affordability.

The slight decrease in home prices, coupled with the competitive nature of the market, suggests a balanced landscape that could potentially favor both buyers and sellers. Monitoring future trends and staying informed about market shifts will be crucial for anyone navigating Atlanta's real estate in the coming months.

ALSO READ: Georgia Housing Market Forecast

Is It a Good Time to Buy Houses in Atlanta?

The decision to buy a house in Atlanta depends on various factors, including your personal circumstances and long-term goals. Here are some key considerations:

Market Conditions: The Atlanta housing market is showing signs of stability and is moving towards a more balanced state, with an increase in the month's supply of homes. This can provide opportunities for both buyers and sellers.
Pricing Trends: While prices have continued to appreciate, the rate of growth has slowed. This may be a positive sign for potential buyers, indicating a possible reduction in the competitive pressure on prices.
Interest Rates: Keep an eye on mortgage interest rates, as they play a crucial role in affordability. Low-interest rates can make buying more attractive.
Personal Financial Situation: Evaluate your financial readiness for homeownership. Consider factors such as your credit score, down payment, and ability to manage mortgage payments.
Long-Term Goals: Think about your long-term plans and how buying a home fits into them. Atlanta has diverse neighborhoods, and it's important to choose a location that aligns with your lifestyle and future plans.

Atlanta Rental Housing Trends

About 50% of the households in Atlanta, GA are renter-occupied. Atlanta rent prices plunged during the most severe period of the coronavirus outbreak when much of the city’s economy was locked down. It is supposed to have ended eight years of steady rent growth in the Atlanta housing market. Average rents were down 2.2% from March through May for the entire metro Atlanta market. The declines were sharpest in areas of Buckhead, Lindbergh, and Emory, Midtown but the suburban markets did not suffer much.

But the latest market reports show a fast pace recovery from the effects of the pandemic. According to Realpage.com's analysis, there's been a record apartment demand in Atlanta. The whole Georgia market claimed the nation’s top spot for apartment demand. Atlanta’s 3rd quarter demand tally of 9,008 units accounted for 87% of the market’s annual absorption in the year-ending September.

The Zumper Atlanta Metro Area Report analyzed active listings across the metro cities to show the most and least expensive cities and cities with the fastest-growing rents. The Georgia one-bedroom median rent was $1,286 last month. Alpharetta was the most expensive city with one bedroom priced at $1,850 while Rome ranked as the most affordable city with one bedroom priced at $850.

The Fastest Growing Cities in The Atlanta Metro Area (Year-Over-Year)

Athens had the fastest growing rent, up 12.5% since this time last year.
East Point saw rent climb 8.2%, making it the second fastest growing.
Newnan was third with rent increasing 3.8%.

The Fastest Growing Cities in The Atlanta Metro Area (Month-Over-Month)

Marietta rent experienced the largest monthly growth rate, up 1.6%.
Atlanta saw rent climb 1.2%, making it second.
Lawrenceville & Mcdonough were tied for third with rents both increasing 0.7%.

Metro Atlanta Rental Market Trends — Courtesy of Zumper.com

Atlanta Housing Market Forecast 2024 and 2025

Atlanta has been one of the hottest real estate markets in the country for years. It is also one of the hottest real estate markets for investing in rental properties. Population growth has had a positive impact on the housing market in Atlanta. This migration has made possible the state's consistent ‘best state for business' rankings. Area Development magazine named Georgia No. 1 for business – for seven straight years (2014-20).

Nine out of 10 Fortune 500 companies have operations in Georgia – and 18 of these have made Georgia their world headquarters. Much of this migration is driven by the strong business environment in Atlanta and the relative affordability of the city. Its robust knowledge-based economic ecosystem attracts new talent to the city. The net migration has led to an ever-increasing demand for housing in Atlanta which cannot be met with the current pace of new construction.

The Atlanta housing market has a housing shortage which will continue to contribute to increasing prices. Atlanta home prices on average are less expensive than the national average. Despite being below the national average, Atlanta home prices have more than doubled since 2012 and are projected to continue increasing.

Overview of Atlanta-Sandy Springs-Roswell Housing Market

According to Zillow, a prominent real estate platform, the average home value in this metropolitan statistical area (MSA) stands at $370,548, reflecting a 2.9% increase over the past year. Homes in this area typically go pending in approximately 31 days. As of January 31, 2024, the market forecasts an optimistic +6.0% growth over the next year.

Key Housing Metrics

For Sale Inventory (January 31, 2024):

The current for-sale inventory in Atlanta-Sandy Springs-Roswell is 19,459 homes. This metric represents the total number of available properties on the market as of January 31, 2024.

New Listings (January 31, 2024):

New listings in the same period amount to 5,034. These listings indicate the number of newly added properties to the market, reflecting the region's ongoing real estate activity.

Median Sale to List Ratio (December 31, 2023):

The median sale to list ratio as of December 31, 2023, is 0.995. This ratio illustrates the relationship between the sale price and the list price, providing valuable insights into market competitiveness and pricing trends.

Median Sale Price (December 31, 2023):

The median sale price for homes in the Atlanta-Sandy Springs-Roswell area, as of December 31, 2023, is $347,700. This figure represents the middle point of all sale prices, offering a benchmark for property values.

Median List Price (January 31, 2024):

The median list price as of January 31, 2024, is $374,633. This metric indicates the midpoint of all current property listing prices, providing valuable information for both buyers and sellers.

Percent of Sales Over/Under List Price (December 31, 2023):

As of December 31, 2023, 25.0% of sales in the Atlanta housing market were conducted over the list price, while 51.9% were under the list price. These percentages shed light on the negotiation dynamics in the real estate transactions of the region.

Understanding the MSA and Counties

The Atlanta-Sandy Springs-Roswell MSA encompasses a diverse and economically vibrant region in Georgia. It includes several counties, each contributing to the overall housing market. Notable counties within this MSA include Fulton, DeKalb, Cobb, and Gwinnett, among others. The collective impact of these counties makes the Atlanta housing market one of the most dynamic and sought-after in the United States.

Size and Significance of the Housing Market

The size of the Atlanta-Sandy Springs-Roswell housing market is substantial, as evidenced by the 19,459 for-sale inventory and the consistent influx of 5,034 new listings. The median sale and list prices, along with the competitive market dynamics, underline the significance of this metropolitan area in the real estate landscape. Investors, buyers, and sellers alike find opportunities and challenges in navigating this robust housing market.

As we move into the future, the +6.0% one-year market forecast suggests continued growth and resilience, making Atlanta an intriguing focal point for those keen on understanding and participating in the evolving real estate landscape.

Are Home Prices Dropping in Atlanta?

As of now, there is no indication of home prices dropping in the Atlanta housing market. The 2.9% increase in average home value over the past year and the +6.0% one-year market forecast both point to a market that is experiencing growth rather than decline. This growth aligns with the general trend observed in the region, making it an essential consideration for potential buyers and sellers.

Will the Atlanta Housing Market Crash?

The current data and forecasts do not suggest an imminent housing market crash in Atlanta-Sandy Springs-Roswell. The positive growth forecast and the stability reflected in key metrics, including the median sale price and list price, indicate a resilient market. However, it's essential to stay vigilant and monitor economic indicators and external factors that may influence the real estate landscape.

Atlanta Housing Market Forecast 2024 and 2025 — Source: Zillow

Top Reasons To Invest In The Atlanta Real Estate Market?

Investing in the Atlanta real estate market offers a myriad of advantages and opportunities. Here are the top reasons why Atlanta is a compelling destination for real estate investors:

Economic Growth

Thriving Job Market: Atlanta is a major economic hub with a diverse job market. It's home to numerous Fortune 500 companies and has a booming tech sector, creating a consistent demand for housing.
Population Growth: The city's population is steadily increasing, attracting both young professionals and families, further fueling the demand for housing.

Affordability

Cost of Living: Atlanta offers a relatively affordable cost of living compared to many other major cities, making it an attractive destination for those seeking quality housing without exorbitant price tags.
Investment Opportunities: Investors can find properties at various price points, catering to both entry-level and luxury markets.

Steady Appreciation

Price Appreciation: Atlanta has experienced steady and sustainable home price appreciation over the years, offering the potential for long-term investment gains.
Historical Performance: The city has weathered economic downturns well, with real estate values generally holding up even during challenging times.

Diverse Neighborhoods

Varied Neighborhoods: Atlanta boasts diverse neighborhoods, each with its own unique character, catering to different preferences and lifestyles.
Growth Potential: Some neighborhoods are undergoing revitalization, presenting opportunities for investors to benefit from future development.

Strong Rental Market

Rental Demand: Atlanta has a robust rental market, driven by its transient population and a consistent influx of students and professionals.
Income-Producing Assets: Real estate can be a reliable source of passive income, making it an appealing choice for investors seeking cash flow.

Quality of Life

Cultural Attractions: Atlanta offers a rich cultural scene with world-class museums, theaters, and entertainment options.
Education: The city is home to renowned universities and schools, making it attractive for families seeking quality education.

Pro-Business Environment

Business-Friendly Policies: Georgia is known for its business-friendly policies and incentives, which can positively impact the overall economic climate and real estate market.
Investor-Friendly Laws: The state's landlord-friendly regulations make property management more straightforward for investors.

These factors collectively contribute to Atlanta's status as a dynamic and promising real estate market, making it a compelling choice for investors looking to benefit from both short-term gains and long-term stability.

Remember, investing in the Atlanta real estate market can offer a wealth of opportunities, whether you're a seasoned investor or new to the world of real estate.

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