Atlanta saw a rise in home prices, competition in May, study says

by Claire Fountas

atlanta-emerging-real-estate-market-2017

Atlanta’s housing market followed the nationwide trend of higher prices and increased competition last month, according to the Atlanta REALTORS May 2017 Market Brief.

Residential sales saw a modest year-over-year increase to 5,860, which is .01 percent higher than it was in May 2016. Over the last month, however, this type of sale experienced a much more notable gain — total home sales rose 21.1 percent from April to May alone. Gwinnett sold 1,207 units in May, which is the highest sale number out of the 11 counties studied throughout metropolitan Atlanta.

Factors such as average and median sales prices also continued to rise, according to the report. The median sales price jumped from $246,000 in May 2016 to $258,000 in May 2017 — a 4.9-percent increase. Average sales prices rose 6.3 percent from the previous year to $323,000.

As prices continue to go up, inventory in the area declined. Atlanta’s 14,658 units of available inventory last month was a 3.8-percent drop from May 2016. The area did see a rise in supply, though — there’s now a 3.1-month supply of inventory compared to 2.9 months in April. The amount of new listings also increased 10.4 percent from the previous month. To Atlanta REALTORS President Bill Rawlings, the numbers allude to a healthy market overall.

“The housing market shows ongoing strength, with prices steadily improving and inventory generally maintaining about three months supply,” Rawlings said in the report. “New buyers and sellers continue to enter the market in increasing numbers, although homes under $400,000 in highly desirable school districts are currently in short supply.”   

May, 2017 May, 2016 YoY Change April 2017 MoM Change
Total Home Sales 5,860 5,853 0.10% 4,838 21.10%
Median Sales Price $258,000 $246,000 4.90% $253,000 2.00%
Average Sales Price $323,000 $304,000 6.30% $315,000 2.50%