The median sales price for a home in Atlanta hit $400,000 for the first time in May’s RE/MAX National Housing Report.
The sales price rose 3.9% month over month and 23.1% year over year to hit that milestone, while the national median sales price rose 1.2% from April and 13.2% from May 2021 to $430,000.
Home sales fell 8.5% both in Atlanta and nationally on a year-over-year basis, while month over month, they rose 7.5% in Atlanta and 5.8% nationwide, as rising interest rates and home prices weighed on homebuyers’ purchasing power. RE/MAX noted in its report that the monthly national gain was about half of the average gain in May during the pre-pandemic years of 2015 to 2019.
The average close-to-list-price ratio of the 51 metro areas surveyed was 103.3%, down 0.2% from last month but up 1.6% from last year. The ratio represents the average value of the sales price divided by list price, and any number over 100% means the home sold for more than asking.
The average days on market in Atlanta totaled 26, compared to 32 in April and 17 in May 2021. Nationally, they totaled 23, down three days from April and two days from a year earlier.
The number of homes for sale in Atlanta rose 16.1% from April and 9.6% from a year ago, while nationally, inventory was up 16.3% month over month and 2.2% year over year. Nationally, months’ supply of inventory rose to 0.9 from 0.8 in April and fell from 1 in May 2021, while in Atlanta, it rose to 1 from 0.8 in April and 0.9 in May 2021.
“The market has tempered a little in metro Atlanta with months of supply and days on the market ticking up slightly,” RE/MAX Around Atlanta broker and owner Kristen Jones said. “This can be attributed, in part, to rising interest rates, but this primarily is a seasonal trend with the end of school and the beginning of summer upon us.
“With one month of supply, inventory is still very low across all price points, but it is extremely low (.7 months), under $350,000, which means many would-be buyers are priced out of the market,” she added. “Even as interest rates continue to rise, there is not enough inventory to cause a major shift in the market. And even rates around 6% are still low historically.”