May 2022 Metro Atlanta Market Overview
The May data is in for Metro Atlanta, and with all the headline news about the housing market, it’s now time to review the facts!
For Metro Atlanta, we continue to see the value of homes increase both year-over-year and month-over-month, so currently there has been no change in the direction of what homes are selling for. In May, the median sales price increased 20% year-over-year.
The biggest and most notable change we are seeing is supply vs. demand, and this is a shift. The number of homes listed was up 21% compared to last year and up over April. However, the number of homes sold was down 26% compared last year and down compared to March and April.
Typically, we would see both listings and the number of homes accelerate starting in February through June/July for what is known as the “selling season.” This reversal is a clear indication that demand for homes is down. We also looked at the showings per listing and note a 30% drop and roughly a 25% drop year-over-year.
So, what does this mean? Increasing mortgage rates have likely reduced the number of buyers actively engaged in the market. We discussed this in our last update but note that even though interest rates are increasing, the percentage is still well below the historic average of around 8%.
While the number of buyers seem to have lowered, move-in ready homes are still attracting top-dollar and many are getting multiple offers. We attribute this to the migration trend to Metro Atlanta and high demand for certain pockets like Roswell, Alpharetta, and Johns Creek to Milton in the North Atlanta corridor.
We know the North Atlanta market, regardless of any upcoming or long term adjustments, will remain a top living destination, and our community has, and continues to offer, one the best lifestyles in the southeast, which is a significant reason why inventory remains extremely low in certain parts of the North Atlanta market.
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Lastly, if you’re looking to buy or sell and need help navigating this market, give us a call today!