METRO ATLANTA
2023 ANNUAL REPORT
KELLERKNAPPREALTY.COM
As we bid farewell to 2023, Keller Knapp Realty’s 20th Year, I wanted to take this opportunity to reflect on the notable trends and developments that shaped the real estate market over the past year. One of the most notable challenges our industry is facing as we head into 2024 is the landmark case Burnett vs NAR, et al. At the heart of this case is the issue of real estate commission, how it is paid, who is required to pay it and whether real estate professionals systematically violate Antitrust Law in the current market environment. A staggering $1.8 billion verdict against NAR is currently being appealed, while more class action lawsuits are filed in many states, including Georgia. The media seems to have deemed this as the beginning of the end of how we practice real estate. But, at Keller Knapp, we feel strongly that this lawsuit will be a good thing in the long view. Professional Realtors® provide a valuable service to buyer and seller clients. And, they should be paid for that service, just like any other professional. This lawsuit highlights those professionals who practice in a manner that is, well ... less than professional. Real estate transactions in Georgia are structured in a way that encourages Buyer Agency, and we believe that all home buyers should be able to have representation for what is likely the largest purchase they will make in their lifetime. Ultimately, we feel this lawsuit will require all agents and brokerages to uphold Antitrust Law, while continuing an environment where buyers’ interests are protected.
FROM OUR PRINCIPAL BROKER
WESLEE KNAPP
We take great pride in the exceptional service we provide to our Keller Knapp clients. We have a saying at our company….People Over Profit. We strive to put our clients’ interests above our own, which is our contractual obligation, but is also at the heart of our Mission: Always with Atlanta's greater good in mind, our mission is to strengthen our communities through agent engagement, providing unmatched local expertise to our clients in a way that only a neighbor can. Our 2023 Annual Report takes a look at some of the key trends, developments and issues in our city’s housing market. Low inventory and higher interest rates were the main market drivers of market activity, keeping unit sales lower with ever-increasing home prices. Affordability, particularly for first time buyers, continues to be an issue in Atlanta, but notably to a lesser degree than other urban markets. We believe 2024 will bring more buyers and sellers into the Atlanta market as rates stabilize and inventory moves up. We look forward to seeing you – our friends, neighbors and clients – in 2024 and helping you with your real estate endeavors! Let’s grab a cup of coffee and catch up soon. Sincerely,
Weslee Knapp, REALTOR® Principal Broker, Owner Local Real Estate Expertise... Like Only a Neighbor Can.
A RETURN TO NORMAL Atlanta was predicted to be the top real estate market in 2023 by NAR Chief Economist, Lawrence Yun. Among the 179 metro areas analyzed by NAR, Atlanta was the only one to meet all 10 indicators such as housing affordability, employment conditions and population growth. The Atlanta metropolitan area continues to be more affordable than the majority of U.S. regions, with more than 20% of renters able to afford an average home purchase. The job market is healthy, with major tech corporations opening offices, leading to significant migration gains and population growth. Our Atlanta Area Summary consists of 10 Areas around metro Atlanta, comprising more than 60 neighborhoods, primarily located inside I-285.
Median Sale Price. The Median Sale Price for All Areas at the end of 2023 was $692,251, up 7.1% over 2022. The change in price ranged from -5.7% to +19.7% across the different areas, with Northwest Atlanta showing the highest gains and Westside the largest decrease in median price. A 5-Year Comparison of Median Sale Price shows a 44.1% increase overall for in the past 5 years. While appreciation of 7.1% is higher than we would expect in a balanced market, it is closer to the 3-5% annual appreciation we typically see in more normal conditions in Atlanta.
Days on Market. Homes spent an average of 16 Days on Market, up from 12 days last year. Atlanta remains competitive, with homes often receiving multiple offers. Homes sold most quickly in the City of Decatur, with an average of 7 DOM. Homes in Southwest Atlanta spent 25 DOM, up nearly 50% from last year. Over the past 5 years, DOM has declined each year, until 2023. The slight increase in DOM supports the gradual return to more normal market conditions, where we would expect to see average DOM around 30 days.
Sale-to-List Price Ratio. The Sale-to-List Price Ratio was 98.3%, indicating homes sell for nearly the full list price. Overall, the SP/LP fell -1.1% from 2022, with all areas posting a slight decrease. However, a few areas saw a decrease as much as -2.4%, indicating a slight cooling of the market. While still robust, the market is currently moving toward more balanced conditions. We expect these trends to continue in 2024 as interest rates fall and stabilize, and more sellers put their homes on the market. Make no mistake, homes are still selling for near asking price in our robust Atlanta market. However, it’s worth noting that 2023 saw the first decline in SP/LP ratio in the last 5 years, indicating a slight cooling in the market. Looking at the Atlanta housing market forecast for 2024, we believe it will continue to be one of the hottest markets in the US. Population growth, a thriving job market and affordability contribute to the positive outlook. Due primarily to low inventory, Atlanta home prices are expected to continue increasing, albeit at a slower pace than recent years. Addressing market concerns, there is currently no indication of a drop in home prices or a housing market crash in Atlanta. The city’s economic growth, diverse neighborhoods, strong rental market, and pro-business environment make it a compelling destination for real estate investors. We believe that the Atlanta housing market will offer tremendous opportunities for both buyers and sellers in 2024, driven by economic growth, population increase, and relative affordability. And, we believe these opportunities exist all over Atlanta...no matter which of our 10 Areas you choose to live, work and play.
5-YEAR COMPARISON: MEDIAN SALE PRICE $800,000 $700,000
$500,000 $400,000 $300,000 $200,000 $100,000 $0 $487,052
$524,909
$574,613
$646,455
$692,251
MEDIAN SALE PRICE
5-YEAR COMPARISON: DAYS ON MARKET 35 30
DAYS
25 20 15 10 5 0 31
24
14
12
16
DAYS ON MARKET
5-YEAR COMPARISON: SP/LP RATIO 100.0% 99.5% 99.0% PERCENTAGES
DOLLARS
$600,000
98.5% 98.0% 97.5% 97.0% 96.5% 96.0% 97.1%
98.0%
99.0% SP/LP RATIO
99.4%
98.3%
MARKET A
20
SINGLE-FAM
ANALYSIS
023
MILY HOMES
75
METRO ATLANTA AREA BREAKDOWN SINGLE-FAMILY HOMES 1
Northwest Atlanta
2
Northeast Atlanta
285
20
3
City of Tucker
4
North Decatur
5
Intown Atlanta
6
City of Decatur
7
South Decatur
8
Southeast Atlanta
9
Southwest Atlanta
10
Westside
85
400 85
2 1 3
4
10 6
5
285
7
20
8 9
675
75
2023 ANNUAL REPORT S INGL E -FAM ILY HOM ES
MEDIAN SALES PRICE $1,536,415 MEDIAN SALES PRICE % CHANGE FROM 2022 19.7%
#UNITS SOLD 625
SOLD PRICE/LIST PRICE 96.5%
DAYS ON MARKET 19
WHAT’S NOTABLE IN
NORTHWEST ATLANTA THIS YEAR? Northwest Atlanta is, by far, the most affluent area in the city. Historically, these neighborhoods have been more insulated from market fluctuations than many other areas of Atlanta. The Median Price for the area increased a staggering 19.7% to $1,536,45 in 2023. All neighborhoods saw impressive increases, with Sandy Springs (west) posting the most dramatic gain to $2,384,719 (+42.8%). With the exception of Sandy Springs (west), every neighborhood in Northwest Atlanta sold significantly fewer units (-25.5%), while DOM increased (+51.7% to 19 days). These trends indicate a significant return to more normal market conditions in this particularly affluent area of Atlanta.
NORTHWEST ATLANTA NEIGHBORHOODS 1 2 3 4 5 6 7
Sandy Springs (W) Sandy Springs (S) Chastain Park Peachtree Hills/Peachtree Park Collier Hills Tuxedo Park West Paces Ferry
400 285 75
2
1
141
3 7 85
6
285
4
5
78
NORTHEAST ATLANTA NEIGHBORHOODS 1 2 3 4 5
Brookhaven - North Chamblee Doraville 85 Brookhaven - South North Buckhead/Pine Hills 141
3 285 85
1 2
5 4
285
85
23
2023 ANNUAL REPORT S INGLE -FAMILY HOMES
MEDIAN SALES PRICE $750,351 MEDIAN SALES PRICE % CHANGE FROM 2022 1.1%
#UNITS SOLD 670
SOLD PRICE/LIST PRICE 98.5%
DAYS ON MARKET 13
WHAT’S NOTABLE IN
NORTHEAST ATLANTA THIS YEAR? In Northeast Atlanta, Chamblee holds a special place in our heart here at Keller Knapp – in 2023 we opened our 4th office right in the heart of downtown Chamblee. High-density housing along the MARTA corridor and along Peachtree Blvd (formerly Peachtree Industrial Blvd) has created a fantastic opportunity for buyers to obtain affordable housing with amenities and a short commute to Atlanta. As the city grows, we expect more retail and commercial development will follow in the coming months and years. In Chamblee, home prices were up 2.9% at the end of 2023 over the same period in 2022. With a median price of $528,750, Chamblee represents relative affordability with convenient proximity to Atlanta.
2023 ANNUAL REPORT S INGL E -FAM ILY HOM ES
MEDIAN SALES PRICE $448,828 MEDIAN SALES PRICE % CHANGE FROM 2022 4.9%
#UNITS SOLD 328
SOLD PRICE/LIST PRICE 99.1%
DAYS ON MARKET 16
WHAT’S NOTABLE IN
CITY OF TUCKER THIS YEAR? City of Tucker is making big strides, literally! The city is slowly building out a 32-mile network of trails, as new restaurants, apartments and homes pour into the suburb. And, proximity to the Northlake neighborhood and developments there, have spurred growth. It’s not surprising to see the real estate market reflecting the progress in Tucker. Particularly in West Tucker, home prices were up 8.0% over last year to a median price of $481,938, driven primarily by 25% fewer home sales over 2022. In East Tucker, conditions were more stable with a modest 1.6% gain in median price to $415,719, while 9.3% fewer homes sold.
CITY OF TUCKER NEIGHBORHOODS 140 1 2
City of Tucker - West City of Tucker - East
285
29
1 85
2
78
10
78
NORTH DECATUR NEIGHBORHOODS 1 2 3 4 5
North Druid Hills Northlake Leafmore/Sagamore Hills 85 Medlock Park Druid Hills
285 85
400
2
154
3 1 85
4 285
5
154
20
2023 ANNUAL REPORT S INGLE -FAMILY HOMES
MEDIAN SALES PRICE $637,741 MEDIAN SALES PRICE % CHANGE FROM 2022 3.6%
#UNITS SOLD 637
SOLD PRICE/LIST PRICE 98.8%
DAYS ON MARKET 8
WHAT’S NOTABLE IN
NORTH DECATUR THIS YEAR? One of the biggest developments on the horizon in North Decatur is the planned redevelopment of North DeKalb Mall. Late in 2023, the Decide DeKalb Development Authority granted $70 million in tax reimbursements to EDENS for the planned redevelopment of the 76-acre mall. And, it was speculated that groundbreaking would begin early in 2024. Proximity to nearby Emory, Children’s Healthcare of Atlanta and CDC will drive the project’s planned focus on healthcare. In surrounding neighborhoods, prices were up 3.6% in 2023 to $637,731 compared to last year in North Decatur. All neighborhoods saw typical appreciation, except Leafmore/ Sagamore Hills, which posted a modest decline (-1.4%). Home sales and DOM were down 22.3% and 30.3%, respectively, indicating a high demand and robust conditions, but still plagued by low inventory.
2023 ANNUAL REPORT S INGL E -FAM ILY HOM ES
MEDIAN SALES PRICE $932,729 MEDIAN SALES PRICE % CHANGE FROM 2022 9.2%
#UNITS SOLD 650
SOLD PRICE/LIST PRICE 98.8%
DAYS ON MARKET 17
WHAT’S NOTABLE IN
INTOWN ATLANTA THIS YEAR? Intown Atlanta is home to many of Atlanta’s quintessential neighborhoods that are less susceptible to a market shift. Some are hip & trendy. Some are established family neighborhoods with great schools. Some have benefitted in recent years from commercial and infrastructure developments. But, what all these neighborhoods have in common is convenient access to neighborhood amenities and walkability. The more people can walk, bike or move around these communities, the more desirable they become. Overall, prices were up 9.2%, ranging from a median price of $629,313 in East Lake to $1,368,125 in Midtown.
INTOWN ATLANTA NEIGHBORHOODS 1 2 3 4 5 6 7 8 9
Ansley Park + Lindridge Martin-Manor Virginia Highland + Morningside Candler Park + Lake Claire Kirkwood + Edgewood East Lake Cabbagetown + Reynoldstown Inman Park Old Fourth Ward Midtown
75
1 2
9 78
3
7 8
4 6 5
85 20
23
CITY OF DECATUR NEIGHBORHOODS 1 2
Decatur Oakhurst
23
78
1 78
2
20
154
2023 ANNUAL REPORT S INGL E -FAMILY HOMES
MEDIAN SALES PRICE $845,571 MEDIAN SALES PRICE % CHANGE FROM 2022 11.0%
#UNITS SOLD 156
SOLD PRICE/LIST PRICE 101.0%
DAYS ON MARKET 7
WHAT’S NOTABLE IN
CITY OF DECATUR THIS YEAR? City of Decatur is consistently one of the most stable and sought-after areas in our Atlanta Area report. Generally, high prices keep the area out of reach for many buyers, particularly first time buyers. And, 2023 was no exception. Prices were up 11.0% over 2022, with a median price of $845,571. A dramatic decrease in unit sales (-24.3%) and lower DOM demonstrate the classic law of supply-demand: with fewer homes available to buyers, homes will sell more quickly and at a higher price. With great schools, idyllic tree-lined streets and amenities abound, there is no reason to think that the City of Decatur will be anything but highly desirable in the coming years. The city has not had a focus on providing affordable and accessible housing, which may mean that price increases continue to outpace Atlanta.
2023 ANNUAL REPORT S INGL E -FAMILY HOMES
MEDIAN SALES PRICE $406,097 MEDIAN SALES PRICE % CHANGE FROM 2022 -1.0%
#UNITS SOLD 646
SOLD PRICE/LIST PRICE 97.7%
DAYS ON MARKET 17
WHAT’S NOTABLE IN
SOUTH DECATUR THIS YEAR? South Decatur continues to be one of the most affordable areas in our Area market report. The median price in 2023 was $406,097, up just 1.0% over last year. With the exception of Avondale Estates, all neighborhoods saw a modest price decrease, lower unit sales and much higher DOM. Belvedere Park, in particular, demonstrated significant cooling trends in 2023, which may make it a very good option for savvy buyers in 2024. Higher interest rates, particularly for investors, likely contributed to the slower pace of sales. Home buyers looking for a convenient in-town neighborhood with a median price below $300K should take a closer look at Belvedere Park, with proximity to both Decatur and Atlanta.
SOUTH DECATUR NEIGHBORHOODS Scottdale Avondale Estates Belvedere Park 285 Candler-McAfee
1 2 3 4
78
85
10
1
78
2
3 154 20
4
20
285
SOUTHEAST ATLANTA NEIGHBORHOODS 1 2 3 4 5 6 7 8 9
Summerhill/Peoplestown Grant Park Chosewood Park/Benteen Ormewood East Atlanta 85 East Lake Terrace Gresham Park Pennington Park/Balleau Woods Lakewood
285
154 20
2
1
4
6 5
3
7 9 166
8 285
675
75
2023 ANNUAL REPORT S INGL E -FAMILY HOMES
MEDIAN SALES PRICE $460,677 MEDIAN SALES PRICE % CHANGE FROM 2022 6.5%
#UNITS SOLD 904
SOLD PRICE/LIST PRICE 98.2%
DAYS ON MARKET 18
WHAT’S NOTABLE IN
SOUTHEAST ATLANTA THIS YEAR? Southeast Atlanta has seen a development boom in recent years, driven by development along the Southeast Beltline corridor, Memorial Drive and the Georgia State stadium in Summerhill. Strong demand continued in 2023, but limited inventory kept unit sales low with higher DOM. By the end of the year, DOM was up 14.4% to 18 days. In particular, East Lake Terrace, Gresham Park and Lakewood showed increased DOM that were closer to normal market conditions (26, 24 and 23 days, respectively), demonstrating a cooling of investment in those areas.
2023 ANNUAL REPORT S INGLE -FAM ILY HOM ES
MEDIAN SALES PRICE $335,710 MEDIAN SALES PRICE % CHANGE FROM 2022 0.5%
#UNITS SOLD 1090
SOLD PRICE/LIST PRICE 96.6%
DAYS ON MARKET 25
WHAT’S NOTABLE IN
SOUTHWEST ATLANTA THIS YEAR? In Southwest Atlanta, we believe Hapeville is worth a look for home buyers in 2024. Recently voted Atlanta’s top neighborhood in Urbanize Atlanta’s annual poll, Hapeville is also home to the new Stillwood development. This 58-home community is located right off North Central Avenue, and represents the only single-family development in Hapeville at the moment. And, while the prices are higher than Southwest Atlanta overall, they are quite affordable compared to most Atlanta neighborhoods, given the size, quality and amenities the development offers. In 2023, Southwest Atlanta overall posted a very slight price increase of 0.5% over last year, while Hapeville gained 5.6% to a median price of $327,624. Comparatively, prices in the Stillwood project range from the mid-$400’s to the mid-$500’s.
SOUTHWEST ATLANTA NEIGHBORHOODS 1 2 3 4 5 6 7
Audobon Forest/Cascade Heights West End/Adair Park Oakland City/Venetian Hills Pittsburgh/Sylvan Hills East Point Hapeville College Park 85
20
20
2 1
3 4
5
6
154
285
7
85
75
WESTSIDE NEIGHBORHOODS 1 2 3 4 5 6 7
Vinings Buckhead - West Underwood Hills/Westside Station 75 Grove Park + Howell Station Mosley Park + Washington Park Collier Heights Riverside
285
1 2
85
3 7
4 6
20
5 20 285
85
2023 ANNUAL REPORT S INGL E -FAM ILY HOM ES
MEDIAN SALES PRICE $568,392 MEDIAN SALES PRICE % CHANGE FROM 2022 -5.7%
#UNITS SOLD 718
SOLD PRICE/LIST PRICE 97.8%
DAYS ON MARKET 19
WHAT’S NOTABLE IN
WESTSIDE THIS YEAR? The Westside has been the darling of redevelopment in recent years. Driven by the Atlanta Beltline and Westside Reservoir Park, the whole area has been ripe for investment. While prices surged in recent years, Westside is the only Area that posted a decrease in median sale price in 2023, likely caused in part by higher interest rates for investors in the developing neighborhoods of Grove Park, Washington Park and Collier Heights. Westside has diverse neighborhoods within its boundaries, which can make an overall assessment of market trends challenging. Median prices ranged from $292,025 in Collier Heights to $1,167,500 in West Buckhead. Neighborhoods with a lower median price will be much more susceptible to market fluctuations, but also often present the best opportunities for savvy buyers.
MARKET A
20
CONDOS & T
ANALYSIS
023
TOWNHOMES
75
METRO ATLANTA AREA BREAKDOWN CONDOS & TOWNHOMES 1
Northwest Atlanta
2
Northeast Atlanta
3
North Decatur
4
Intown Atlanta
5
Westside
285
20
Our overview of the Condo and Townhome market includes 5 Metro Atlanta Areas that make up approximately 85% of the total Residential Attached sales. These areas are rich in high-density and multi-family housing. We also present Condos and Townhomes separately, because there is a substantial price difference between the two types of homes. 85
400 85
2 1
5
3
5 285
4
20
675
75
NORTHWEST ATLANTA
2023 ANNUAL REPORT KEY METRICS CONDOS MEDIAN SALES PRICE $308,738 MEDIAN SALES PRICE % CHANGE FROM 2022 0.7%
#UNITS SOLD 612
SOLD PRICE/LIST PRICE 97.9%
DAYS ON MARKET 20
TOWNHOMES MEDIAN SALES PRICE $560,168 MEDIAN SALES PRICE % CHANGE FROM 2022 3.1%
#UNITS SOLD 203
SOLD PRICE/LIST PRICE 98.8%
DAYS ON MARKET 15
NORTHEAST ATLANTA
2023 ANNUAL REPORT KEY METRICS CONDOS MEDIAN SALES PRICE $303,225 MEDIAN SALES PRICE % CHANGE FROM 2022 6.5%
#UNITS SOLD 352
SOLD PRICE/LIST PRICE 98.2%
DAYS ON MARKET 17
TOWNHOMES MEDIAN SALES PRICE $570,318 MEDIAN SALES PRICE % CHANGE FROM 2022 -1.4%
#UNITS SOLD 269
SOLD PRICE/LIST PRICE 99.4%
DAYS ON MARKET 11
NORTH DECATUR
2023 ANNUAL REPORT KEY METRICS CONDOS MEDIAN SALES PRICE $249,194 MEDIAN SALES PRICE % CHANGE FROM 2022 -0.2%
#UNITS SOLD 187
SOLD PRICE/LIST PRICE 98.9%
DAYS ON MARKET 12
TOWNHOMES MEDIAN SALES PRICE $529,925 MEDIAN SALES PRICE % CHANGE FROM 2022 1.1%
#UNITS SOLD 98
SOLD PRICE/LIST PRICE 99.3%
DAYS ON MARKET 17
INTOWN ATLANTA
2023 ANNUAL REPORT KEY METRICS CONDOS MEDIAN SALES PRICE $349,850 MEDIAN SALES PRICE % CHANGE FROM 2022 1.3%
#UNITS SOLD 958
SOLD PRICE/LIST PRICE 98.5%
DAYS ON MARKET 17
TOWNHOMES MEDIAN SALES PRICE $598,551 MEDIAN SALES PRICE % CHANGE FROM 2022 -2.4%
#UNITS SOLD 210
SOLD PRICE/LIST PRICE 99.3%
DAYS ON MARKET 14
WESTSIDE
2023 ANNUAL REPORT KEY METRICS CONDOS MEDIAN SALES PRICE $290,000 MEDIAN SALES PRICE % CHANGE FROM 2022 1.5%
#UNITS SOLD 529
SOLD PRICE/LIST PRICE 98.3%
DAYS ON MARKET 22
TOWNHOMES MEDIAN SALES PRICE $493,607 MEDIAN SALES PRICE % CHANGE FROM 2022 6.6%
#UNITS SOLD 391
SOLD PRICE/LIST PRICE 99.2%
DAYS ON MARKET 23
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