In metro Atlanta, demand has been strong in the city, but there are more homes listed in the suburbs and exurbs. Prices have risen both inside and outside the city limits.
A number of factors are at play, said economist Matthew Speakman of Zillow, the online listing and research firm. Mortgage rates have been at record lows, while a generation of millennials is “aging into homeownership,” he said.
With buyers far outnumbering sellers, prices have been rising steadily, especially for new construction.
Case-Shiller calculates an index based on sales prices during three consecutive months that do not include new construction. That narrower, but deeper, view means that Case-Shiller is widely viewed as a reliable guide to the market’s direction, but it does not always reflect short-term fluctuations.
Re/Max recently reported a 15% rise in home prices for metro Atlanta. But Re/Max calculates a median price, not an average, and compares only November’s prices with those of the same month a year earlier. Re/Max also includes some newly built homes, according to a spokeswoman.
Growth in average home prices, past 12 months
1. Phoenix: 12.7%
2. Seattle: 11.7%
3. San Diego: 11.6%
4. Cleveland: 9.5%
5. Boston: 9.4%
6. Portland: 8.9%
National average: 8.4%.
13. Atlanta: 6.8%
Note: does not include prices of new homes.
Source: S&P CoreLogic Case-Shiller Indices