As we wrap up the 2024 calendar year, the latest data from November indicates the North Fulton housing market is showing mixed signals. While it still favors sellers, trends are cooling, and some key metrics reflect a shift towards a more balanced market. Let’s take a deeper dive into the numbers and trends shaping our local real estate landscape.

North Atlanta Market Snapshot

Year-Over-Year Trends: A Cooling Seller’s Market

The data for November reveals that, on a year-over-year basis, the North Fulton market remains in the seller’s favor, but is softening.

• Active Listings: The number of active listings in North Fulton is up 38% compared to last year, signaling that more properties are entering the market.
• Closed Sales: Despite more homes being listed, closed sales are down by 5%, which reflects a slowdown in buyer demand.
• Median Sales Price: On a positive note, the median sales price has increased by 10%, indicating that while fewer homes are selling, high demand homes are fetching a premium.
• Price Reductions and Failed Listings: One concerning trend is the rise in price reductions and failed listings. The percentage of listings requiring a price reduction has jumped 9%, now sitting at 47%. Additionally, 47% of listings in North Fulton failed to sell entirely, further signaling a shift in market conditions.

Market Cooling: What Sellers Need to Know

We’ve been highlighting these trends for several months now, and it’s clear that the market is cooling, albeit slowly. For sellers, the key takeaway is that pricing a property has become more challenging. It’s essential to pay close attention to competing listings and how long they’ve been on the market. Pricing too high can lead to extended days on the market and the need for eventual price reductions.

In a recent experience with a new listing, one of our clients was surprised to learn that nearly 30 homes in the same price range were available in their desired school district. While they thought they had a competitive advantage due to a lack of inventory, the reality was different, and it underscored the importance of strategic pricing in today’s market.

Mortgage Rates: The Biggest Market Challenge

Mortgage rates are still the largest factor influencing the local housing market. Higher rates continue to keep many buyers on the sidelines, unwilling to commit to higher monthly payments. We believe that if mortgage rates can dip below 6%, it could help unlock some of that pent-up demand and bring more buyers back into the market.

Metro Atlanta Market Snapshot

When we expand our view to the broader Metro Atlanta area, we see similar trends playing out:

• Active Listings: Year-over-year, active listings are up 44%, signaling a clear increase in inventory across the metro area.
• Properties Under Contract: There was a slight 1% decrease in properties going under contract, suggesting that while inventory is rising, demand is not keeping pace.
• Closed Sales: Despite inventory increases, closed sales rose by 1%, driven by buyers who are still active in the market, albeit more selectively.
• Price Reductions: 48% of closed sales in November involved price reductions, further evidence of the cooling market.
• Time to Go Under Contract: Listings are taking longer to go under contract. The average time to contract is up 50% from last November, now averaging 39 days.
• Failed Listings: Failed listings also saw an increase, up to 42%, highlighting that not all properties are selling in this softer market.
• Sales Price to Original List Price: The sales price to original list price ratio has dropped to 97%, down from last year, reflecting the cooler demand and more negotiating room for buyers.

Key Takeaways for Sellers and Buyers

For sellers, the market is still strong but cooling, and pricing remains critical. Listings that sit too long without price adjustments risk becoming stale, and the days of overpricing with the expectation of multiple offers are behind us for now. Sellers need to be more attuned to the competition in their local market.

For buyers, while there is more inventory to choose from, higher mortgage rates are still a significant hurdle. However, as sellers adjust prices and the market softens, there may be opportunities for buyers to secure a good deal if they can act strategically.

Ultimately, as we head into the new year and beyond, the North Fulton market will continue to evolve. Keeping an eye on these trends, including mortgage rate changes and local inventory shifts, will be essential for both buyers and sellers to navigate the current market successfully.

Feel free to reach out if you’re interested in discussing how these trends could affect your buying or selling strategy!

Source:FMLS, single family, Greater Atlanta Area