Residential housing inventory has remained at historic lows for months. February bounced back with an increase in new listings, which seems promising for potential buyers as the home-selling season gets underway. However, the median sales price throughout the Georgia MLS membership continues to rise, impairing buyers’ chances in the market if they do not act quickly, ready to make an offer. An in-depth analysis of February’s market data is included below. You can also visit the Georgia MLS Market Statistics page to view historic metrics since 2017.
Georgia MLS members reached over $3.4 billion in total sales volume for February, an 20.4% increase over last year and a 21.6% increase over January 2022. Despite the increase in sales volume, Atlanta Agent Magazine gives the metro housing market an overall thumbs down.
- Atlanta MSA: $2.8 billion (+22.6% y/y, +27.6% m/m)
- 12-county Atlanta Core: $2.2 billion (+11.7% y/y, +19.9% m/m)
Housing affordability continues to weaken as the median sales price for residential homes across the Georgia MLS membership increased to $335,000 (+24.1% y/y and +3.5% m/m).
- Atlanta MSA: $352,000 (+23.5% y/y, +3.5% m/m)
- 12-county Atlanta Core: $365,000 (+23.7% y/y, +3.7% m/m)
Politico reports that there are no quick or easy solutions to skyrocketing home prices, with many of the factors determining housing supply. Therefore, home prices are “very much determined at the local level, and to influence that from the federal level is very difficult.”
Georgia MLS members sold 8,409 residential units in February (-4.3% y/y, +12.6% m/m). While the membership saw an uptick in housing inventory over last month, supply is still relatively low compared to last February, creating stiff competition among buyers. Residential inventory is at just 0.82 months, indicating that if new listings stopped completely, there are only a few weeks of housing inventory available before no more sales could be completed. Inman News explores five trends driving the inventory crisis, noting “This situation isn’t just pandemic-related.”
- Atlanta MSA: 6,517 units sold (-4.0% y/y, +16.5% m/m)
- 12-county Atlanta Core: 5,259 units sold (-6.5% y/y, +17.5% m/m)
The Georgia MLS membership currently has 10,775 new listings, a -0.8% decrease from February 2021 (+7.2% m/m). 10,197 active listings are currently on the market (-3.1% y/y, -4.5% m/m).
- Atlanta MSA: 8,118 new listings (-3.7% y/y, +5.8% m/m), 7,151 active listings (-4.3% y/y, -6.1% m/m)
- 12-county Atlanta Core: 6,624 new listings (-4.6% y/y, +6.9% m/m), 5,733 active listings (-6.6% y/y, -4.7% m/m)
According to an article in Time Magazine, the tightness in housing inventory and rising home prices is a result of not enough new homes being built but also, “a surge in investors purchasing single-family homes to rent out to families, further limiting supply, and a generation of Boomers who are choosing to age in place rather than sell their homes.” As we enter the third year of the pandemic, real estate professionals will have to work harder and harder for every sale. Take a look at the resources, products, and services available to GEORGIA MLS members to help give your business a competitive edge.
- 5 Valuable Benefits Georgia MLS Offers to Real Estate Professionals
- Top 5 Things You Need to Know About GeorgiaMLS.com
- Increase Brand and Listing Exposure with Your Georgia MLS Personal Website Provided With Your Membership
- Why Professional Development Matters: Top Tips from Greg Epps
Posted in GAMLS