As Eddie Cochran so eloquently put it, so many years ago: There ain't no cure for the summertime blues.*
Not even in real estate.
Yes, we know. The Who made the song even more famous (and raucous). But this is the point:
The sale of homes in metro Atlanta fell 16.5 percent between June and July, something that happens pretty much every time around the calendar, according to a report Friday from Re/Max Georgia.
"This summertime slowdown is a trend that we sometimes see this time of year," said John Rainey, vice president of Re/Max Georgia. "After a jump in home sales in May and June, it's not unusual to see a dip in home sales in July."
Slightly more unusual and concerning was the dip in July sales compared to the same month in 2016. The number of sales dipped by 3.9 percent from a year ago.
However, the broad elements of Atlanta’s market held true during the month: weakening sales, scarce listings of homes for sale and increasing prices.
The median price of a home sold in July was $227,500, which was 3.4 percent up from a year ago, according to Re/Max Georgia .
Inventory – that is, the supply of homes for sale – has been a long-running problem for the market. A balanced market generally has inventory equal to six or seven months of sales, but Atlanta’s market has had barely half that.
In July, that supply represented 2.7 months of sales compared to 3.4 months a year ago.
Low supply pushes buyers into an intense competition for those homes that are listed and desirable. It can push prices up faster than incomes, which can add to the affordability challenges faced by first-time buyers.
“Low inventory continues to constrain the Greater Atlanta housing market,” said Rainey. “On average, homes are on the market for less than a month and a half. Successful buyers will need to be ready to act fast to purchase listings that are selling quickly.”
Number of homes sold
County July comparison to year ago
Gwinnett
Cobb 965 -6.5 percent
Fulton 890 -8.0 percent
DeKalb 655 -6.3 percent
Clayton 103 15.7 percent
Median sales price
County July comparison to year ago
Gwinnett $232,928 6.3 percent
Cobb $266,660 0.7 percent
Fulton $395,000 12.2 percent
DeKalb $285,000 7.5 percent
Clayton $126,750 9.3 percent
Source: Re/Max Georgia
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