Atlanta Housing Market Faces Rising Supply and Challenges

News Summary

The Atlanta housing market is undergoing significant changes as supply reaches its highest level since 2020. With more unsold homes on the market, homeowners are struggling with overpricing while buyers are hesitant. In November, 54.6% of homes in Atlanta remained unsold for at least 60 days, reflecting a broader trend of increasing inventory nationwide. Though economists predict stabilization in housing prices, the future still poses challenges for both buyers and sellers in the Atlanta area, as the market shifts from a seller’s paradise to a neutral territory.

Atlanta Housing Market Faces Challenges with Rising Supply and Unsold Homes

There’s no denying that the Atlanta housing market is experiencing some noticeable changes. Recent reports show that housing supply in the U.S. has reached its highest level since 2020, largely due to a growing number of homes that just aren’t selling. Buyers and sellers alike are scratching their heads as the market shifts beneath their feet.

What’s Behind the Rise in Housing Supply?

So, what’s causing this uptick? A significant number of homes are hitting the market but aren’t making the sale. Many homeowners are asking for prices that just don’t match what buyers are willing to pay right now. This trend of overpricing has turned many properties into something many potential homebuyers are avoiding like the plague.

Statistics reveal that more than half of home listings across the nation during the month of November were still up for grabs after sitting on the market for at least 60 days. This is a considerable spike, marking the highest percentage for any November since 2019. In fact, it reflects an almost 50% increase compared to last year, showing just how much the dynamics of the market have shifted.

Atlanta in the Spotlight

Let’s zoom in on Atlanta, where the situation is proving to be particularly challenging. A whopping 54.6% of homes for sale in the city lingered unsold for at least 60 days in November. That’s a significant number! Between November 18 and December 15, a total of 24,233 homes were available in Atlanta, which is nearly a 5% increase from prior months. Shockingly, over 13,200 homes in Atlanta remained on the market without a buyer in sight.

Vacancy Rates and Housing Units

147,029 housing units nationwide, with around 10.1% of them sitting empty. To put things into perspective, year-round vacant units make up 7.8% of total housing units. Meanwhile, 58.9% of households are owner-occupied, while 30.9% are rental units. The South is really feeling the heat here; rental vacancies are at 8.5% of inventory, while homeowner vacancy rates sit at just 1.4%.

Specifically looking at Atlanta, there are 2,548,356 housing units, with 197,073 units (approximately 7.76%) being vacant and primarily available for rent. Unfortunately, the city is facing some heated scrutiny, as housing prices in metro Atlanta have been deemed the second most overvalued in the nation. The average expected home value is around $276,033, while average sales prices currently hover at an eye-popping $387,471.

Future of the Housing Market

31.9% of listings in Atlanta experienced a price decrease. This could be a glimmer of good news for buyers, especially if mortgage rates start to fall. A more favorable mortgage environment could entice more buyers back into the market.

On a national scale, the market seems to be transitioning from a seller’s paradise to a more neutral territory. Inventory is rising—up nearly 25% compared to last year—but it remains almost 31.5% below pre-pandemic levels. The evolving landscape of the housing market in Atlanta and the rest of the U.S. is certainly worth keeping an eye on for both prospective homebuyers and current homeowners alike.