Sales volume by dollar amount fell precipitously, declining 37.4% from $2.59 billion worth of transactions in December to $1.62 billion in January, Georgia MLS reported, citing its monthly Housing Market Snapshot.

Builders started to make headway against supply-chain issues that have hampered construction of homes in the face of high demand. 

Atlanta’s housing inventory fell 22.3% year over year in December to a record low of a one-month supply, Atlanta REALTORS® Association reported.

New homes and existing homes are appreciating at similar rates, according to a new report from CoreLogic.

“December saw sales retreat, but the pull back was more a sign of supply constraints than an indication of a weakened demand for housing.” — NAR chief economist Lawrence Yun

While multifamily starts surged 13.7% compared to November, the pace of new single-family housing construction slid 2.3%, according to the U.S. Census Bureau and the U.S. Department of Housing and Urban Development.

“While lean existing home inventory and solid buyer demand are supporting the need for new construction, the combination of ongoing increases for building materials, worsening skilled labor shortages and higher mortgage rates point to declines for housing affordability in 2022.” — NAHB Chairman Chuck Fowke

Decatur and the city of Atlanta saw the greatest monthly declines in the median rent for a one-bedroom apartment in December, while Smyrna and Alpharetta had the greatest increases, online listing agent Zumper reported.

“MBA expects solid growth in purchase activity this year, as demographic drivers and the strong economy support housing demand,. However, the strength in growth will be dependent on housing inventory growing more rapidly to meet demand.” — Mortgage Bankers Association associate vice president of economic and industry forecasting Joel Kan

An analysis by iBuyer Opendoor found that the most highly searched ZIP codes in Atlanta were far outside the city center.

At the same time, the average 30-year fixed-rate mortgage rose to 3.33%, its highest level since April 2021, the Mortgage Bankers Association said.

Inflation concerns are influencing plans for homebuyers and sellers, according to a recent Redfin survey.

Atlanta took seventh place, while Tampa, Fla., was ranked first.

Housing affordability fell to its lowest level since 2008 in October as home prices rose 19.6% from last year.

Nationally, housing prices were also on the rise, according to the S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index. 

The year ended with days on market falling to 49 from 61, while sales of existing homes plunged on an annual basis.