Worsening affordability challenges are affecting first-time homebuyers

The median sales price of an Atlanta home was up 20.6% from a year earlier, at $409,400, Georgia MLS reported. 

The shift comes at a great cost as rising mortgage rates continue to keep buyers out of the market.

Home sales and days on the market in Atlanta both declined.

Nationally, the index posted its highest annual increase ever.

With affordability reduced, some buyers are pulling back from the market forcing sellers to adjust their price expectations.

The county far outpaced its neighbors in terms of housing starts, closings and lot deliveries in the first quarter, according to a new report from asset manager and developer St. Bourke. 

Nevertheless, home prices are expected to continue rising through the end of the year, according to the National Association of REALTORS®. 

The record-high price for Atlanta real estate was set in April, as home sales fell 13.8% from a year ago. 

Atlanta was No. 4 for electric vehicles and No. 9 for vegan options, but its scores in the other categories brought down its overall ranking.