In the second quarter of 2021, the Atlanta real estate market has seen housing prices rise and sales increase in number. Inventory remains low. With interest rates remaining low, buyers are encouraged to lock in a mortgage and buy a home now.
Median Sale Price
Based on statistics from Atlanta First Multiple Listing Service, the median sale price in the second quarter of 2021 reached $340,000. That’s an 8% increase from the beginning to the end of the quarter. This growth is largely due to an imbalance between supply and demand. With demand for homes outpacing the supply of homes, this leads to bidding wars and increased prices.
Number of Homes Pending and For Sale
Another indicator of housing market health is the number of homes sold. In the second quarter of 2021, there has been a slight dip in the total number of homes pending and an increase in the number of homes for sale. This could be an indicator that we are approaching a price ceiling. It could also be an indicator that less people are home shopping now because as restrictions from the pandemic are being released, people are traveling in record numbers. While home sales are tapering slightly, the market shows no signs of supply reaching the level of demand for houses any time soon.
Days on Market and List Price to Sale Price (DOM and LP/SP)
Days on Market shows us the time between the first day it was listed until the day it sold (went under contract). The demand for housing is more apparent when we look at the dwindling time listings spend on the market. Metro Atlanta homes are on the market for just under a week. With the current limited supply of houses, housing prices should be expected to increase even more, going into Q3 and Q4 of 2021.
What does this mean for current or future Atlanta homeowners?
The Atlanta housing market is in a boom. Atlanta housing prices are continuing to trend up, with no indication that they’ll slow down by the third or even fourth quarter of the year. Although potential buyers should be cautious about rising home prices, any homebuyers who need to purchase a house immediately should do so as soon as possible, as prices should only rise even more in the near future. While home prices may have risen, the average monthly payment only rose by $5-$10. This is because mortgage rates were at or near historic lows.
It’s also a good time to sell a home in Atlanta and. Sellers are enjoying quick sales, cash offers, bigger down payments, and offers for over their asking price.
At RPM Home Advisors, we are skilled at navigating this quickly changing market and help our buyers and sellers get the most favorable terms for their home. Reach out to us today and put us to work for you!
Blog Post by Pam Ahern