The housing market is starting to adapt.
For the first time in two years, inventory is catching up slightly with demand. Through the pandemic, metro Atlanta had a one-month supply of houses on the market. Last month, the supply jumped to two months. Buyers are finally starting to feel like they have some leverage.
There is some seasonality at play. People were on vacation last month and focused on returning their kids to school. Demand traditionally falls off this time of year.
Notably, though, across the main markets around metro Atlanta — North Fulton, East Cobb, Buckhead, Intown, Sandy Springs and the combined Brookhaven/Dunwoody — the average sales price decreased slightly in Buckhead only compared to July 2021, while the other markets saw double digit increases. That is the first time any of these markets have seen a average price drop since prices started their relentless climb.
However, home sellers are still getting their asking price and a quick sale when the home is priced right. Dorsey Alston isn’t seeing as many buyers in multiple offer situations as before.
Looking more closely at those close-in markets, North Fulton led the way last month. The average closed price for a single-family (attached & detached) home climbed 23% over July 2021 to $798,642.
The number of new listings jumped from 491 in July 2021 to 629. The number of sales dropped 31%. It was the only market Dorsey Alston analyzed that saw an increase in the number of new listings compared to last year.
Last month, Sandy Springs experienced a significant decline in sales, from 199 in July 2021 to 108, a 46% drop owing to the lack of inventory. The number of new listings was down 26%, while total listings were down 14% compared to last year. The average sales price climbed to $728,747.
The Intown market saw an 11% jump in the average sale price last month, from $527,831 to $584,295. The number of sales dropped 34%, while new listings were down 14% and overall listings were down 19%.
The number of sales in East Cobb fell 35% last month compared to a year ago, while the average sales price climbed to $580,626, up 17% compared to a year ago. New listings were down 17%. Last month, the number of active listings was the same as July 2021 – 497.
The average sales price decreased slightly in Buckhead compared to July 2021, the first time since the market turned the corner during the pandemic. The average number of days on the market fell 44%, and the number of new listings dropped 35%. The number of sales, similarly, fell 40%.
The average sales price in the Brookhaven/Dunwoody markets climbed to $669,047, an 11% increase. The sales in the combined markets fell 26%, while the number of new listings was down 13%. The average number of days on the market was 17 last month.
Comparing July 2021 to last month, new listings in the 11-county Atlanta metro area dropped, as did the number of sales by 31%. The average sales price, however, was up 15% to $510,957, while total listings were up 21%.
While we disagree with the Atlanta Business Chronicle’s assessment of the Federal Reserve dumping a bucket of ice water on the market, Dorsey Alston sees some changes in the market.
Traditionally demand picks back up after the school year starts and settles, and our agents are still handling a lot of transactions, which tells us the market is healthy. Interest rates are hovering around +/-5% and continue to fuel strong buyer demand.
