Atlanta Intown Real Estate Services Single Family Mid-Year 2024 Market Report

VIEWPOINT

During 2022 and 2023 there was a long-awaited and dramatic shift in the housing market. In July 2023, the Federal Reserve raised interest rates for the 11th time in 17 months, to combat inflation. Mortgage rates went from around 3.25% in January 2022 to over 7% in 2023, drastically increasing the monthly cost of financing a home purchase and reducing a Buyer’s “purchasing power.” Rates have remained largely the same in 2024.

Most notably, the increase in mortgage rates has caused a substantial decline in the number of closed transactions. In metro Atlanta, the total number of single-family detached home sales in January-June 2024 declined by only 1.25% when compared to the same period in 2023, but the cumulative decline from the first half of 2022 is 32%.

While the number of closed single-family home transactions year to date through June 2024 is at a historic low, the average sales price continued to rise. In metro- Atlanta in June 2024 the average sales price was $514,904 vs. $482,286 in June 2023. This represents an increase in the Average Sales Price of 6.75%. This indicates it is still a good time to sell.

Active inventory of single-family homes in metro Atlanta increased a dramatic 55% from 16,312 active listings as of the end of June 2024 compared to 10,529 at the end of June 2023. This increase in inventory has led to properties staying on the market longer, sellers having to negotiate more, and represents a return towards a more normal, balanced market. If inventory continues to increase, prices are likely to flatten or decline.

Of the 81 neighborhoods we reviewed, the majority of neighborhoods (64) were still deemed to be a “seller’s market”. We used the measuring stick that six months of available inventory represents a balanced market: meaning 0-5 months of inventory represents a seller’s market (a market more favorable to sellers in negotiations), and over 7 months of inventory represents a buyer’s market. Of the neighborhoods reviewed 11 were balanced markets and 6 were buyer’s markets.

The Average Sales Price to Original List Price ratio (“SP/OLP”), is a measure of how close to the original asking price a seller is getting, remained high in most neighborhoods, but was lower than in previous years. This means that Sellers are having to negotiate more than they were in recent years. The degree of negotiation varied by neighborhood, averaging around 97%. In 10 of the 81 neighborhoods we reviewed there were virtually no negotiations, with SP/OLP ratios of 100% or slightly over - in several of the Intown, Buckhead, and Decatur neighborhoods. In 18 of the neighborhoods, there were more substantial negotiations with SP/OLP ratios of below 95% – mostly in the West Side and East Point neighborhoods.

In October 2023 there was a verdict in the Sitzer-Burnett class action antitrust lawsuit which challenged Multiple Listing Service (“MLS”) rules and the real estate compensation model. Historically, both buyer-side and seller-side commissions have been negotiated by the listing broker and seller, paid by the seller, and advertised in the MLS. In 2024, we began tracking the average buyer-side commission paid by sellers for each neighborhood and condo building we reviewed in this report. We do that in an effort to make the amount of commission (and who pays it) more transparent to Buyers and Sellers. Of the 81 neighborhoods reviewed, 26 still averaged the Seller paying 3% commission, only 2 of the neighborhoods dipped below 2.8% paid by Seller, with the rest of the neighborhoods averaging between 2.8-3.0%

While it is hard to predict future real estate trends, we want our clients to understand what is happening in the market, so they will understand pricing and how quickly a home will likely sell in the neighborhoods where they live or hope to live. We hope this report will help with that. If you would like a more in-depth analysis of a specific area or want to determine the value of your home, our neighborhood real estate experts are here to help.

We know the Atlanta market. Your neighborhood is our business.

Randal Lautzenheiser, Managing Broker and Owner

Len Kwilos, Agent and Owner

David Vannort, Agent and Owner

INTOWN

MIDTOWN

ANSLEY PARK/ANNEX/SHERWOOD FOREST

HOME PARK & ATLANTIC STATION

VIRGINIA HIGHLAND

MORNINGSIDE & LENOX PARK

PONCEY HIGHLAND

OLD FOURTH WARD

INMAN PARK

CABBAGETOWN

REYNOLDSTOWN

GRANT PARK

ORMEWOOD PARK

SUMMERHILL

CHOSEWOOD

PEOPLESTOWN

CANDLER PARK

LAKE CLAIRE

DRUID HILLS

EDGEWOOD

KIRKWOOD

EAST LAKE

EAST ATLANTA

WOODLAND HILLS

LINDRIDGE/MARTIN MANOR

VIRGINIA HIGHLAND

SELLER’S MARKET

KIRKWOOD

EAST LAKE/EAST LAKE TERRACE

BUCKHEAD BY NEIGHORHOOD

BROOKWOOD HILLS

LORING HEIGHTS

BERKELEY PARK

GARDEN HILLS

PEACHTREE HILLS

PEACHTREE PARK

TUXEDO PARK

CASTLEWOOD

RIDGEWOOD HEIGHTS

UNDERWOOD HILLS

COLLIER HILLS

SPRINGLAKE

BROOKWOOD HILLS

SELLER’S MARKET

UNDERWOOD HILLS

851

GARDEN HILLS

CASTLEWOOD

BUCKHEAD BY ELEMENTARY SCHOOL

GARDEN HILLS ELEMENTARY

MORRIS BRANDON ELEMENTARY

SARA SMITH ELEMENTARY

E RIVERS ELEMENTARY

JACKSON ELEMENTARY

SELLER’S MARKET

BROOKHAVEN, CHAMBLEE &

NEIGHBORHOODS

BROOKHAVEN

CHAMBLEE

ASHFORD PARK

EMBRY HILLS

LAVISTA PARK

PINE HILLS

NORTHCREST

BROOKHAVEN

ASHFORD PARK

NEIGHBORHOOD SALE

Foxford Drive, Doraville, Georgia 30340 Sold for $680,000 on Original List Price of $720,000 in 23 days on market. It is a 5 bed/4 bath, with 3,468 sq ft at $196.08/sq ft. Built in 1970. Sold 6/20/2024.

SELLER’S MARKET

NORTHEAST ITP

BY ELEMENTARY SCHOOL

OAK GROVE ELEMENTARY

SAGAMORE HILLS ELEMENTARY BRIARLAKE ELEMENTARY

SELECT ZIP CODES IN

SANDY SPRINGS & DUNWOODY

SANDY SPRINGS 30328

SANDY SPRINGS 30342

SANDY SPRINGS 30327

DUNWOODY 30338

SANDY SPRINGS 30327

30338

DUNWOODY

WEST SIDE

ASHVIEW HEIGHTS

COLLIER HEIGHTS

DIXIE HILLS

CENTER HILL

GROVE PARK

MOZLEY PARK

CAPITOL

SYLVAN HILLS

VENETIAN HILLS

Thurmond Street

Atlanta, Georgia

Sold for $170,000 on Original List Price of $199,900 in 128 days on market. It is a 3 bed/2 bath, with 1,219 sq ft at $139.46/sq ft. Built in 1920. Sold 1/31/2024.