Summer home prices continue to heat up as the 2018 market continues to feel the strains of low inventory, according to the latest report from the Atlanta Realtors Association.
The median home sales price in May grew nearly 10 percent compared to last year, rising from $257,000 to $282,000. This is a 3.7 percent growth from April’s median of $272,000. The average sales price also grew 7.5 percent year-over-year, $320,000 in May 2017 to $344,000 in 2018.
Although active listings and new inventory listings are up from April, total housing inventory totaled 13,156, down 10.2 percent from last May. The month’s supply, however, did increase from 2.5 months in April to 2.7 months.
The constraint in inventory, however, led total sales to drop 4.7 percent year-over-year to 5,838. Last May, home sales reached 6,125 in the Atlanta area.
“The economy is very healthy and job growth is holding strong, keeping the demand for homes robust,” said ARA President Bill Murray. “However, the Atlanta market needs more new and existing homes available for sale to allow home prices to moderate enough for potential home owners to continue to have choices available.”