Atlanta’s real estate market had a strong 3rd quarter in terms of continued price increases, a reduction in days-on-market, and strong sales-to-list-price ratios. Here are a few highlights from our Q3 market analysis.
- On a year-over-year basis, prices per square foot are up 5.9% in the 14 communities we monitor.
- The S&P Case-Shiller Index for Atlanta (which takes into consideration over 20 counties adjacent Metro Atlanta) showed a 5.23% increase during the same period.
- The median days-on-market for the 14 communities we monitor decreased 13% from 23 to 20 days.
- The average sales-to-list-price ratio during this period stayed roughly the same at 98.15%.
All 3 of these metrics continue to indicate a strong market for Sellers. With a 98% sales-to-list-price ratio, Sellers didn’t have to discount much at all in order to sell their homes. In fact, in hot areas like Grant Park and Inman Park, the average was over 100%, indicating intense competition for homes there.
While most of the data indicates a continuation of the strong Seller’s market we’ve been witnessing for the last 3 years, there was a slight uptick in the “average months of inventory” which went from 2.7 to 3 months’ worth of standing inventory. This could be an anomaly but it also could mark the beginning of a trend towards a more balanced market. We’ll have to keep an eye on it in the months to come.
Note: “average months of inventory” is how long it would take the market to absorb all currently listed homes given the sales pace of the last 90 days. This metric is often used as a general indicator of whether we’re in a Seller’s or Buyer’s market. For reference, most economists believe that a balanced market (one that doesn’t favor the Buyer or Seller) occurs when there’s between 4 and 7 months of available inventory.
You can view additional information on each of the 14 markets we monitor below, and if you have questions about the value of your home or trends in your neighborhood, feel free to touch base any time – we’d be happy to help!
Considering buying or selling a home? Here are a few resources and related articles:
How to Get the Most for Your Home – Part 1: Preparation
Atlanta Real Estate Predictions for 2017
Why Photography is so Important in Atlanta’s Real Estate Market
Dear Real Estate Agent, What Were You Thinking? How to NOT sell your home…
How to Get the Most for Your Home – Part 2: Positioning and Promoting your Home