Atlanta real estate is soaring like never before, boosted by the rapid influx of people making the move to this Georgia capital. Market analysis by a leading US real estate think tank reveals that the real estate market value of Atlanta is much higher than the national average. Homes here are also getting sold faster.
Atlanta home values as of May 2019 by Zillow show an 8.2% uptick from last year at $259,100. The online real estate database further predicts that there’s still no stopping this trend from its upward movement up to next year.
Even apartment rentals here manifest the same increasing trend. As of April 2019, Zumper figures revealed that the price of a 1-bedroom apartment for rent in Atlanta is around $1,470 a month – a 4.3% increase from last year. A 2-bedroom rental, meanwhile, averages at $1,810 a month – a 0.6% increase from last year. It is ranked 18th among the areas with the most expensive rental market in the country.
Despite the high selling values of the housing market in Atlanta, homes here are still selling like hotcakes; thus, the area’s nickname of “Hotlanta” is even more appropriate. Then again, Atlanta house prices were catapulted to their present rates mostly due to the limited inventory. Coveted homes can be snatched up by eager home buyers in as short as 6 days; whereas a less desirable home sale takes 13 days. That’s still fast, considering that the average amount of time that a home for sale stays on the market is around three months.
For several years now, the real estate market of Atlanta has been a sellers’ market. But several indicators reveal that this year may just be the turning point for the market. As seen earlier, home values are still increasing but at a slower pace compared to figures from, say, 2017 and 2018. Experts attribute this to an increase in new construction and foreclosed homes in the area.
To see the discreet but noticeable changes in the Atlanta real estate profile, one only has to go back to Summer 2018 when Atlanta had around 2 ½ months’ supply of homes. This was the estimated amount of time that listed Atlanta homes would be on the market, granted that no new homes for sale were listed within that period. Take note that for a real estate market to be balanced, it should have around 5 to 6 months’ supply of homes.
It was in December 2018 when a shift was seen in the Atlanta housing inventory. This time, there was a 4 ½ months’ supply of homes for sale. According to the Atlanta Realtors Association’s market brief, the November 2018 housing inventory in the Atlanta Metro Area stood at 14,455 units—a significant 10.2% increase from last year.
Atlanta real estate is now showing a more balanced supply and demand. With that, the bidding wars have also relaxed and the competition has lessened.
As mentioned earlier, Atlanta’s growing population was among the key factors that led to the increased demand for housing. A survey done in 2017 revealed that Atlanta’s population stood at 486,290, and the wider metro area had around 5.8 million people in the same year.
A closer look at Atlanta’s demographics will reveal that this growth was due to the migration of people from other states to Georgia, drawn by the pull of a fast-paced economy and a wealth of career opportunities.
Millennial Home Preferences
Most of these very recent Atlanta residents are millennials hoping to fast-track their careers here. However, with Atlanta property values in Atlanta, GA still outside of their financial scope, some of them prefer to rent. Others simply would rather live in apartments located near their workplaces.
According to an article in AJC.com, only a fraction of these millennials have plans of actually buying a home. What keeps them from doing so in the near term is their financial capability versus the relatively steep down payment requirements.
Millennials’ residential preferences in Atlanta are also contributing to the more relaxed demand for homes in the area. This is a promising trend that may bring more balance between buyers and sellers in Atlanta’s real estate market.
If you want to take a chance on the better outlook for Atlanta properties, reach out to us to guide you through your real estate transaction here. I am Natalie Gregory and our team of expert realtors will be glad to serve you. Call me at 404.550.5113 or email me at Natalie(dotted)Gregory(at)Compass(dotted)com.