Homebuyers can now afford $400,000 homes with $2,500 monthly budgets for the first time in four months, according to a new report from Redfin.

Homebuyers are returning, but sellers still aren’t filling the need as inventory remains low.

Homebuyer demand is rising, as mortgage applications rose 28% since November, and more prospective buyers are scheduling home tours.

The median sales price of a new home was down on a monthly basis but up on an annual one. 

Total housing inventory rose 45.9% from December 2021 to 10,547 units, while new listings fell 26% to 3,845. 

House prices, however, continued to rise, marking the 130th consecutive month for price gains, the longest streak on record, the National Association of REALTORS® said.   

More buyers have entered the market in the past four weeks as mortgage rates fell.

The U-Haul Growth Index showed Georgia was a net importer of residents based on the number of one-way truck rentals to and from the state. 

The increase in builder confidence breaks a string of 12 straight monthly declines in the NAHB/Wells Fargo Housing Market Index. 

The firm said 147,881 multifamily units are in some stage of the development process in the greater Atlanta market. 

The city’s relative affordability in today’s high interest-rate environment helped put it on the list. 

Redfin attributes the drop to the record high mortgage rates, recession concerns, record low inventory, extreme winter weather and the holiday slowdown. 

The median sales price of homes sold was $370,000, up 2.8% from December 2021 but down 1.1% from November, according to the latest Georgia MLS Housing Market Snapshot. 

A record share of sellers are giving buyers concessions including money for repairs and mortgage-rate buydowns.

Geographically, the largest home-price increases took place in the Southeast, led by Florida (18%), South Carolina (13.9%) and Georgia (13.6%), CoreLogic reported, citing its November Home Price Insights report.    

Homes linger on market longer as buyers take their time.