“The bright spot in an otherwise underwhelming report comes from the increase in the overall number of permits issued, which can signal how much home construction is in the pipeline.” — First American deputy chief economist Odeta Kushi

Following months of sky-high prices paired with manic competition — driven by limited supply — the frenetic housing market is starting to cool down. Somewhat.

Smaller, more affordable homes are hitting the market, helping moderate median list prices, according to Realtor.com.

The median sales price of homes sold in the Atlanta metro area surged by 22.5% on a year-over-year basis in July to $349,000, according to statistics from the Georgia MLS.

For the first time since early March, no new records were set for median-home-sale prices last month, ending the five-month streak of record-breaking home prices.

Just 56.6% of homes sold during the quarter were affordable to families earning the U.S. median income of $79,900, according to the National Association of Homebuilders/Wells Fargo Housing Opportunity Index.

Meanwhile, housing starts rose to 3,485 from 2,397 a year earlier, according to Atlanta Agent’s July Housing Scorecard.

Affordability declined in 49 of the 50 major markets according to the May 2021 First American Real House Price Index.

With the increased number of professionals working remotely, today’s homebuyers are putting less of a premium on commute time and more on affordability.

The nationwide housing inventory shortage that has driven growth in prices and demand in Atlanta and other major markets may be beginning to ease, according to RE/MAX’s  National Housing Report for June.