Metro Atlanta home prices continued their upward surge in June, but a growing inventory could make it less of a seller’s market.
The median price of a home sold last month in the 11-county area was $372,500. That price is 3.5% higher than the month before and a robust 26.3% higher than June 2020, said the Atlanta Realtors Association.
For several years, demand for homes has outpaced the number listed for sale, and the imbalance has grown during the pandemic. That’s because, while many professionals suddenly saw the need for more space, many potential home sellers suddenly became more reluctant to open their residences up to strangers.
When homes go on the market, potential buyers often have been forced to bid against each other, nudging prices higher, often even above the asking price. Meanwhile, mortgage rates have stayed near record lows.
This summer, with many people vaccinated and the economy recovering, there seems to have been a tipping point.
From May to June, listings jumped 12.9%, evidence of a shift, said Cynthia Lippert, the president of the Realtors association. “We have seen some initial signs of this beginning to ease. (But) this will not happen overnight,” she said.
Bridget Doss, Realtor with Kelli Phillips Realty Group, agreed.
“It is still very low, but there has been a slight uptick,” Doss said. “There are more properties available.”
In a market balanced between buyers and sellers, the number of homes listed for sale roughly equals the number sold over six months. A year ago, metro Atlanta’s listings equaled a historically low 1.8 months of sales — and it kept falling. By May, inventory represented sales of just one month.
But in June, that edged up to 1.2 months. That’s still very low, but the change in direction was significant, said Kristen Jones, owner of Re/Max Around Atlanta.
”Overall, the market is still competitive, but not as intense as it was several months ago,” she said.
The sharpest price gain in the region over the past 12 months — 34.6% — was in Forsyth County, according to Re/Max.
Forsyth also had the highest median price in June: $493,852 compared to second-place Fulton, with $433,500. However, Fulton had about four times more sales than Forsyth.
The region’s median price in June was the highest on record, Re/Max said.
Metro Atlanta Housing Market
Increase in median sales price, largest counties
Cherokee: 22.1%
Clayton: 27.4%
Cobb: 24.0%
DeKalb: 20.1%
Forsyth: 34.6%
Fulton: 29.4%
Gwinnett: 26.3%
Henry: 25.6%
Coweta: 34.6%
Fayette: 12.1%
Source: Re/Max
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Median sales price, largest counties
Cherokee: $383,500
Clayton: $203,900
Cobb: $384,250
DeKalb: $359,700
Forsyth: $493,852
Fulton: $433,500
Gwinnett: $350,000
Henry: $288,950
Coweta: $350,000
Fayette: $374,500
Source: Re/Max
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