Metro Atlanta Real Estate Market Update: January 2025 Trends

Metro Atlanta began 2025 with a continued decline in closings for the month of January. We’ve been tracking this trend for months, but home prices remain stable despite shifting market conditions. Inventory levels are climbing, yet the overall market is still considered a seller’s market, with months of supply at 4.5 months. However, real estate is hyper-local, and different areas within Metro Atlanta are experiencing unique trends.

Let’s take a closer look at how the market performed in January, particularly for detached homes.

Month-Over-Month Trends

Compared to December 2024:

• New Listings increased by +49%
• Available Inventory rose by +7%
• Pending Sales (Under Contract Listings) decreased by -10%
• Closed Sales declined sharply by -35%
• Months of Supply reached 4.5 months
• Median Sales Price declined 4%

The significant drop in closed sales and the increase in inventory clearly indicate that January was a softer month than December. However, real estate is cyclical, and month-over-month trends can be misleading. That’s why we also focus on year-over-year comparisons for a broader perspective.

Year-Over-Year Trends

Compared to January 2024:

• New Listings were up +14%
• Available Inventory surged +46%
• Pending Sales declined -6%
• Closed Sales dropped slightly by -3%
• Months of Supply remained stable
• Median Sales Price increased 1%

While inventory has increased significantly, the number of sales hasn’t kept pace, indicating that buyer demand isn’t as strong as in previous years.

How Today’s Market Compares to a Normal Market

A key consideration is how today’s market compares to a more balanced period, such as 2019, before the pandemic-driven real estate surge.

• Active Listings are down 20% compared to 2019 likely due to higher interest rates.
• Home sales are down ~30% compared to 2019, largely due to fewer buyers in the market.
• Days on Market: Sellers are now averaging 55 days on market before going under contract.
• Sold-to-Original-List-Price Ratio: Homes are selling at 96% of their original asking price.
• Failed Listings Rising: The number of listings that fail to sell during their original listing period has climbed to 46%, meaning nearly 1 in 2 listings is expiring unsold—a significant shift from the COVID-era boom.
• The housing market can be unpredictable, and navigating changing conditions can feel overwhelming. Whether you’re buying or selling, understanding current trends is crucial to making informed decisions.

Our team has experienced multiple market cycles, and we are here to guide you every step of the way. If you’re considering a move, let’s discuss how we can leverage our expertise to help you succeed in today’s Metro Atlanta market.

☎️ Contact us today to strategize your next real estate move!

Source: FMLS, single family, 8 Atlanta metro counties