This year’s housing market has been white-hot in Atlanta, just like much of the rest of the country. Homes were selling within hours of going on the market for six figures above the original asking price with all contingencies waived. Double-digit offer numbers were the norm, not the exception. Now, there are whispers that the Atlanta housing market is finally cooling off. But what does the data say?
The June sales numbers according to FMLS MarketStats for the Greater Atlanta area appear to indicate a (slight) cooling of the market as well. While average sales prices continued to rise, the climb was significantly more muted last month, up just 1.8% compared to a nearly 5% jump in May and a 7% jump in April.
New listings are also on the rise, with a 10.7% jump from May. This bump in inventory may give frustrated Atlanta homebuyers a much-needed reprieve. With more homes on the market, prospective homebuyers are more disbursed, resulting in less competition and, at least theoretically, fewer homes selling six figures over their list price. Pending sales have also decreased 8.9% from last month and closed sales have been hovering around the same numbers since March for the Greater Atlanta area. Months of inventory saw a slight uptick to 1.2 from 1.1 last month, still at critically low levels compared to a healthy market supply of about 6 months.
In a typical year, a slight slow-down in June is normal. In fact, historically, the best time to list your home and receive the highest offer price is mid to late May because this tends to be when the spring market is at its peak. But, let's face it, the past year and a half have been anything but normal. Only time will tell if this slight cooling is temporary or here to stay. There are definitely many other factors in play that will help determine what will happen over the course of the next few months. Perhaps most crucial of all is how much longer the record low mortgage interest rates will last. While prices have risen, the low rates have been one of the only factors that have worked to keep housing affordability in check.
If you're like most prospective buyers out there, you're crossing your fingers and hoping this cooling and the low interest rates are here to stay just a little longer. For those house shopping right now, have you started to notice a cooling of the market as well?
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