Atlanta’s housing market remained tight in December, as low inventory drove prices higher, Atlanta REALTORS® Association reported.
Atlanta’s housing inventory plunged 22.3% year over year to 6,852 units, while new listings fell to 4,950, a 21.2% drop from a month earlier and a 7.4% decline from December 2020, ARA reported, citing data from First Multiple Listing Service. The month’s supply fell to a record low of one month, according to a press release.
Home sales fell 11.3% year over year to 6,287, while the median sale price jumped 21.9% from December 2020 to $378,900, and the average sale price rose 19.2% to $447,000.
The historical market cycles have become less pronounced in the new normal, Atlanta REALTORS® President Karen Hatcher said in the release, noting that the window of opportunity that typically opened for buyers in November and December has now closed, as seen in the record low inventory.
“If the December numbers give us any indication, they firm up our predictions that 2022 will continue to see prices rise,” Hatcher said, adding that while rising interest rates could provide temporary relief in buyer demand, it also curbs buyer purchasing power, which could push some buyers, especially at lower price points, out of the market entirely.
Sellers could see a gradual tightening of prices throughout the year, with a shallowing of the growth curve returning the pace of increases to a more normal range by year end, Hatcher said.
The ARA report covers 11 metro-Atlanta counties: Cherokee, Clayton, Cobb, DeKalb, Douglas, Forsyth, Fulton, Gwinnett, Fayette, Henry and Paulding.