Home prices in the Metro Atlanta area hit a new peak in 2016’s second quarter, according to the Q2 2016 U.S. Home Sales Report from RealtyTrac.
Basing its analysis on publicly recorded sales deeds from more than 900 counties nationwide, RealtyTrac found that Metro Atlanta’s median price was $192,000, a 1 percent monthly increase and 2 percent yearly increase that set a new record for the area. Atlanta was one of 39 metropolitan areas to see prices hit new highs, along with Dallas, Seattle, and Minneapolis.
Low mortgage rates and home prices
Daren Blomquist, the senior vice president at ATTOM Data Solutions (formerly RealtyTrac), said that low interest rates have been the key driver of home price growth – although that scenario could change this year.
“The all-time home price highs nationwide an in many local markets are being enabled by historically low mortgage rates — which are falling once again this year,” Blomquist said. “It is likely that some of the most interest rate sensitive local markets will see home price appreciation knocked down when the low rate rug is finally pulled out from under the housing recovery. We are seeing signs of weakening appreciation in many bellwether markets already in spite of the rock-bottom rates.”
Below, we’ve charted how Atlanta’s price growth compares with other large metro areas:
| MSA | June Median Price | MoM % Change | YoY % Change | Peak Price |
|---|---|---|---|---|
| Atlanta | $192,000 | 1% | 2% | $192,000 |
| Boston | $288,000 | 9% | 7% | $373,000 |
| Dallas | $240,156 | 1% | 8% | $240,156 |
| Denver | $344,500 | 1% | 11% | $344,500 |
| Houston | $215,215 | -1% | -2% | $219,558 |
| Los Angeles | $565,000 | 1% | 7% | $585,000 |
| Miami | $233,750 | 4% | 6% | $292,000 |
| New York | $380,000 | 7% | 4% | $437,000 |
| Phoenix | $229,900 | 5% | 12% | $260,000 |
| San Francisco | $755,000 | -1% | 6% | $765,000 |
| Seattle | $385,000 | 3% | 6% | $385,000 |