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Atlanta's housing market continues to be a national hotspot in 2024. Buoyed by a robust economy, a diverse cultural scene, and a steady influx of new residents, the city offers a unique blend of opportunity and affordability for both homebuyers and investors. However, the market is experiencing some subtle shifts compared to the seller-dominated frenzy of recent years. Let's delve into the key trends shaping Atlanta's housing market in 2024 and explore what lies ahead.

Current Housing Trends in Atlanta

Atlanta Home Prices

To better understand the housing prices in Atlanta, examining different metrics in detail can offer a comprehensive outlook.

What is the Average Home Price? According to Zillow, the average home value in Atlanta is $399,879, which represents a 2% year-over-year increase. This rise indicates a growth trend despite some regional price corrections.

Median Sales Price Based on data from Redfin, in May 2024, Atlanta home prices experienced a slight decrease of 1.1% compared to the previous year. This reflects a median sales price that has become more attainable for a segment of the market.

Median List Price Realtor.com data reveals a wide disparity between different neighborhoods:

Midtown Atlanta: Median listing price at $410,500.

Morningside – Lenox Park: Median listing price at $1.2 million, showcasing a significant premium segment.

Pittsburgh: Median listing price at $359,900, down 4% year-over-year.

Utilizing these figures, the median list price can be understood as a gauge of how sellers are positioning their properties in the market.

Are Home Prices Dropping in Atlanta?

The following table highlights the year-over-year price changes in selected neighborhoods:

Neighborhood Year-over-Year Price Change South Atlanta -26.3% West End -12.6% Midtown -3.9% East Atlanta +4.9% Sylvan Hills +1.7%

These disparities show that while some areas are facing price corrections, others are benefiting from rising home values.

Atlanta Home Sales

How did the Housing Market Perform in the Last Month? Realtor.com indicates dynamic performance with high activity in some regions. The median sold prices in areas like Midtown ($405,000) and varying market demands in other parts underline this trend.

How Many Homes Were Sold? Exact numbers aren't universally reported monthly, but substantial sales activity in premium and high-demand areas indicates a robust transactional environment.

Did Home Sales Drop or Rise Compared to the Same Month Last Year? Redfin states certain localities saw contrasting performance:

East Atlanta with a 4.9% price increase suggests higher sales volumes.

Neighborhoods like South Atlanta with a 26.3% price drop likely reflect fewer sales.

Analyzing these changes provides valuable insights into where the market is robust versus where it is experiencing downturns.

Atlanta Housing Supply and Demand

Is the Atlanta Housing Market Cooling? Cooling trends are characterized by increased inventory and slower price growth. Indicators:

Decreases in median home prices in several neighborhoods suggest the market is cooling.

Conversely, regions with price growth like East Atlanta signal ongoing, perhaps intensified demand.

Is Atlanta a Seller's Real Estate Market?

In Atlanta, this can be location-dependent.

Factors favoring sellers:

High demand in specific areas: Neighborhoods such as Morningside – Lenox Park or Midtown Atlanta see competitive bidding, leading to appreciation of property values.

Reduced inventory: Limited properties for sale often tilt the leverage in favor of sellers, driving faster sales and sometimes above-list prices.

Challenges for sellers in specific locales:

Price drops: Areas like South Atlanta or the West End facing substantial reductions (over 12% or more) reflect less favorable conditions for sellers.

Extended listing periods: Cooling demand can lead to properties staying longer on the market, requiring sellers to be more flexible with pricing.

Is Atlanta Real Estate Overvalued?

Assessing whether Atlanta real estate is overvalued involves comparing current prices with economic fundamentals like income levels, growth potential, and historical trends.

High growth areas: With Zillow showing average value increases, especially significant in premium sectors, there's an argument for overvaluation, mainly where price increases substantially outpace the broader market and income growth.

Balance in other locales: Neighborhoods seeing modest or declining prices may be closer to intrinsic value, aligning more with economic fundamentals.

Expert Opinions:

Analyst trends often predict prices normalizing as more supply enters the market.

Some growth corridors might still experience robust price appreciation due to continued demand and infrastructural development.

Atlanta Housing Market Predictions for 2024 and Beyond

The Atlanta MSA housing forecast shows that home prices in Atlanta, GA are expected to remain flat (0%) by June 30th, 2024 and then decrease by 0.6% by August 31st, 2024. Over the next year, home prices are expected to decrease by 0.5% by May 31st, 2025.

It's important to remember that these are just forecasts and actual market conditions may vary. However, this data suggests that the Atlanta housing market may be starting to cool down slightly after a period of strong growth. This could be due to a number of factors, such as rising interest rates or an increase in inventory.

Looking forward, several factors offer guidance on trajectory expectations:

Continued Urbanization and Investment Attraction: Development projects and corporate relocations to Atlanta will fuel housing demand, particularly in urban and well-connected suburban areas.

Potential Price Stabilization: Areas with recent sharp drops might stabilize as the market corrects overvaluation and aligns with demand-supply equilibrium.

Demographic Shifts: As remote work reshapes living preferences, we might see increased suburban demand, altering the dynamics of housing values.

Economic Indicators:

Interest Rates: Fluctuations in mortgage rates will directly affect buying power and demand.

Employment Trends: Job growth, particularly in high-income sectors, can further stimulate the housing market.

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 andamp; Mcdonough were tied for third with rents both increasing 0.7%.

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.