Atlanta’s housing supply increased by 7,858 homes in August, marking a 30% gain from the same month last year.

The jump in mortgage activity was driven in large part by refinancings, which surged 58% in the week ended Sept. 12. 

At the same time, completions of new single-family homes were on the rise last month, according to federal statistics. 

The National Association of Home Builders said its monthly builder-confidence survey indicated rising optimism that lower interest rates could spur new-home buying activity. 

The Atlanta metro area received a “buyer” designation on Zillow’s Market Heat Index.

The surge comes as the rate on a 30-year fixed-rate mortgage fell to its lowest level since October 2024. 

The rate of home-price appreciation slowed to just over half the rate of inflation in July, Cotality noted. 

The median sales price grew slightly compared to last year, hitting $405,450. However, that still marks a 2.3% decrease from July.

Atlanta’s high rental potential and relatively low prices make it a perfect choice for residential investors looking for comfy margins, Cotality said.

Despite the decrease in borrowing costs, the Mortgage Bankers Association’s Market Composite Index showed a decrease in mortgage applications in the week ended Aug. 29. 

By the end of the year, Atlanta will have added a total of 17,512 units.

At the same time, existing-home sales and housing starts fell, while days on market jumped.

Despite a slowdown in single-family construction activity, newly built homes are becoming increasingly accessible to American buyers, in terms of both availability and affordability. According to data from the New-Construction Insights report released by Realtor.com, in the second quarter

Signed contracts declined despite lower interest rates and improved affordability and inventory, the National Association of REALTORS® said.   

The pace of home-price appreciation declined to its slowest pace in two years, according to the S&P Cotality Case-Shiller U.S. National Home Price Index. 

The upside surprise came despite monthly and yearly declines in the pace of sales.