Market Report, Atlanta Real Estate
Roger Bozza
Atlanta Market Update - January 2021

Atlanta Housing Market Update: January 2021

The Atlanta Housing Market started 2021 the same way it ended 2020, with prices continuing to increase and supply continuing to decrease. Current supply levels dropped to 1.2 months (6 months is normal) and the median sales prices was $309,000, up 17.9% from 2019. Below is the market update for January 2021 from the Atlanta REALTORS® Association.

January Highlights

Demand: January residential sales were at 4,421, an increase of 1.0% from the previous year.

Price: Average and median sales prices continue to outpace 2020’s figures, with positive gains. The median sales price in January was $309,000, an increase of 17.9% from last January. The average sales price was $379,000, up 17.9% from the previous year.

Supply: Atlanta area housing inventory totaled 8,133 units in January, a decrease of 48.5% from January 2020. New listings totaled 6,679, down 19.4% from January 2020 and up 27.1% from the previous month. The month’s supply over a 12-month period decreased to 1.2 months.

Atlanta Market Update - January 2021
Market Report, Atlanta Real Estate
Roger Bozza
Atlanta Market Update - November 2020

Atlanta Housing Market Update: November 2020

The Atlanta Housing Market remained strong in November. Demand remained strong, up 9.8% from 2019. Due to a continued drop in inventory and strong demand, prices continued to appreciate throughout Atlanta. Current supply levels dropped to 1.6 months (6 months is normal) and the median sales prices was $310,000, up 15.7% from 2019.

November Highlights

Demand: November residential sales were at 5,950, an increase of 9.8% from the previous year.

Price: Average and median sales prices continue to gain traction and outpace 2019’s figures, with positive gains. The median sales price in November was $310,000, an increase of 15.7% from last November. The average sales price was $376,500, up 15.0% from the previous year.

Supply: Atlanta area housing inventory totaled 10,485 units in November, a decrease of 42.3% from November 2019. New listings totaled 6,239, down 5.8% from November 2019 and down 27.1% from the previous month. The month’s supply over a 12-month period decreased to 1.6 months.

Atlanta Market Update - November 2020
Market Report, Atlanta Real Estate
Roger Bozza
Atlanta Market Update - October 2020

Atlanta Housing Market Update: October 2020

As expected the overall volume of real estate transactions decreased. However due to a continued drop in inventory and low interest rates, prices continued to appreciate throughout Atlanta. Below is the market update for October 2020 from the Atlanta REALTORS® Association.

October 2020 Highlights

Demand: October residential sales were at 6,051, a decrease of 3.3% from the previous year.

Price: Average and median sales prices continue to gain traction and outpace 2019’s figures, with positive gains. The median sales price in October was $315,000, an increase of 19.8% from last October. The average sales price was $375,500, up 16.8% from the previous year.

Supply: Atlanta area housing inventory totaled 12,291 units in October, a decrease of 36.9% from October 2019. New listings totaled 8,122, down 9.5% from October 2019 and down 4.7% from the previous month. The month’s supply over a 12-month period decreased to 2.0 months.

Demand: May residential sales were at 4,085, a decrease of 36.8% from the previous year.

Atlanta Market Update - October 2020
Market Report, Atlanta Real Estate, Selling Real Estate, Buying Real Estate, Real Estate Investing
Roger Bozza
Atlanta Market Update - September 2020

Atlanta Market Update - September 2020

The Atlanta Real Estate Market in September continued the strong activity observed in August 2020. Despite all of the uncertainty in the country, September has showed that the fundamentals are still in place to support a strong Atlanta housing market. Record low mortgage rates have certainly driven demand along with a renewed optimism in the economy. Strong demand along with low (and decreasing) supply has resulted in houses flying off the market, bidding wars and continued price appreciation. Although prices continue to rise in Metro Atlanta and the surrounding suburbs, the extremely low interest rates have helped counterbalance the increase in prices. Without an increase in inventory it will be interesting to see where the market goes next.

Here’s a summary of some key metrics.

Atlanta Market Update - September 2020
Market Report, Atlanta Real Estate, Selling Real Estate, Buying Real Estate, Real Estate Investing
Roger Bozza
Atlanta Market Update - August 2020

Atlanta Market Update - August 2020

The Atlanta Real Estate Market in August continued the strong activity observed in July 2020 and took it to the next level. The strong demand in June and July is generally believed to be due to pent up demand from the shutdown. August has showed that the fundamentals are still in place to support a strong housing market. Record low mortgage rates have certainly driven demand along with a renewed optimism in the economy. Strong demand along with low (and decreasing) supply has resulted in houses flying off the market, bidding wars and continued price appreciation. Although prices continue to rise in Metro Atlanta and the surrounding suburbs, the extremely low interest rates have helped counterbalance the increased cost. Without an increase in inventory it will be interesting to see where the market goes next.

Here’s a summary of some key metrics.

Atlanta Market Update - August 2020

Don't Wait to Purchase Real Estate.

Don't Wait to Purchase Real Estate.

Should I wait for prices to decrease?

Disclaimer

Before I begin and before people misinterpret my statements I would just like to clarify that I am not saying everyone should rush out and buy a piece of real estate tomorrow. Investing in real estate is a major decision and should be made carefully and based on your individual situation. My overall stance is that if you are ready and have the desire to buy a house, don’t wait.

Some Background

Back in 2015 many people were telling me that they were going to hold off buying a house until prices came down. In their opinion prices had appreciated too much, so similar to how people try to time the stock market (buy low and sell high) they thought they could do the same with the real estate market. Many of these people felt very strongly, even though they were not in the real estate industry so did not understand the health and dynamics of the market. I attribute this to fear. Fear of either getting caught in another 2008 housing bubble/crash and being hurt financially or fear of looking stupid because they bought at the top. Fast forward 4 years and many properties in established or upcoming Atlanta neighborhoods have appreciated over 50%. If you factor in the use of leverage (small down payment with a mortgage for the balance) a 5x return on investments is not uncommon. So although we have experienced above normal price appreciation over the past few years and you might argue that hindsight is 20/20, I will explain why these results shouldn’t be a surprise. Even if a housing correction did take place, it was still a good time to buy if you had a long-term view.

Why it was wrong to wait in 2015

By 2015 houses in high-demand areas appreciated significantly from their lows in 2008, however in my opinion those were artificial lows. The economy was terrible and the housing collapse prevented banks from lending. That caused high-quality properties to drop well below what they were worth. As the economy started to improve many of those properties returned back to where they should have been priced in the first place. This appeared to some, who weren’t following the real estate market closely, as extraordinary price increases however, it was just things returning back to normal. It was clear that the most desirable areas in Atlanta were going to continue to appreciate at a solid rate. In 2015 the market became extremely hot because of a number of factors.