Are we still in a Seller’s Market? | Atlanta by the Numbers
Valerie discusses key metrics (inventory, days on the market, and average sales price) in the real estate market to help you understand where Atlanta’s housing market really stands as of April 5th, 2023!
Inventory = months of supply. How many months will it take to sell all available inventory?
Typically, the market is classified as a seller's market if the inventory is less than 4 months, and anything above 6 months is a buyer's market. Last year, we were in a strong seller’s market and we continued to see multiple offers through May. Towards the end of the 2nd quarter, the supply started to rise and peaked at 2.5 months at the end of the 3rd quarter. In January, it hit its lowest point at 2 months, indicative of spring's arrival, which is typically the busiest time of the year for real estate. Currently, the inventory is on the rise, but it is still just below 3 months, representing a strong seller's market.
Days on the market = the number of days between a property’s list date and a signed contract.
Last year in the 3rd and 4th quarters, the market slowed down due to the holidays and the median days on the market peaked at 30 days. Currently, it is hovering around 20 days, representing a healthy and active market.
Average sales price = impacted by supply and demand.
When demand is high, the price goes up — when demand is low, the price goes down. Last year, the average sales price in Atlanta peaked just below $480K in the 2nd quarter, after which it gradually declined in the 3rd and 4th quarters. Do note this was around the same time that the interest rates went up which greatly reduced the demand. Our current average sales price is on the rise again and hovering at just over $443K!
By analyzing these three key metrics, you can see that we are in fact (despite what the news says!) in a healthy and strong real estate market. With just 2.5 months of inventory, we are still in a seller’s market! Reach out today if you are considering making a move — and don’t forget when you sell with Vesta Consulting Group, you have options!