Metro Atlanta becomes buyers’ market — for those who can afford it

Redfin Chief Economist Daryl Fairweather said Atlanta was reflecting a national trend that has seen the playing field gradually tilt toward buyers. In the U.S. overall, it is the strongest buyers’ market since 2014, she said.

“High mortgage rates combined with the higher-than-usual amounts of supply means that prices just had to come down,” Fairweather said in an interview.

Redfin ranked metro Atlanta fourth among major U.S. metros for price declines year over year during the four weeks ending July 13, behind Oakland, California; West Palm Beach, Florida; and Tampa, Florida. The median sale price declined in 12 of the 50 most populous metros included in the analysis.

It’s the continuation of a trend that has seen sellers offering concessions to buyers to help pay for closing costs, repairs or mortgage rate buydowns as the supply of available homes increases.

But the good news for buyers actively looking for a home is tempered by the reality of homeownership still being out of reach for many Atlantans, as the city has become more unaffordable.

According to the Federal Reserve Bank of Atlanta, as of April 2025, buyers would need a qualified household income of a little over $120,000 a year to reasonably afford the median home price in the Atlanta-Sandy Springs-Roswell area.

With a median income in the area at about $90,000, according to the financial institution, households are roughly $30,000 short without becoming cost burdened. According to the U.S. Department of Housing and Urban Development, a family is considered stretched if it has to pay more than 30% of its income on housing costs.

The Federal Reserve Bank of Atlanta says the share of income needed to own a median-priced home in April was 40%, based on the metro area’s median income. The median home payment — including principal and interest, taxes, insurance and private mortgage insurance — would be about $3,000 a month.

Nationally, home prices were up 60% since 2019, with a median price for a single-family home at $412,500 in 2024, according to the 2025 The State of the Nation’s Housing report by the Joint Center for Housing Studies at Harvard University.

“Home price appreciation combined with elevated interest rates drove up homebuyers’ mortgage payments, pricing less affluent households out of the for-sale market,” the report states.

The current weekly average rate for a 30-year fixed mortgage is 6.75%. Fairweather said rates are still a barrier to homeownership.

Credit: arvin.temkar@ajc.com

Credit: arvin.temkar@ajc.com

“Even though prices have come down, mortgage rates are still elevated — much higher than they were during the pandemic. Mortgage payments are a bit better than they were last year, but they’re not better than they were two or three years ago,” she said.

John Ryan, chief marketing officer of the Georgia Multiple Listing Service, said Redfin’s findings were broadly in line with June data in the region’s 12-county core.

Its data showed a 2.8% change year over year. In June 2024, the median sale price was $430,000. This June it was $418,000. Ryan said sellers are now more likely to strike a deal at a small discount, rather than getting an offer at or over asking price.

“That tells us there’s negotiating power on the buyer’s side,” he said.