Inventory Story

Much like the last couple of years, the short supply of houses for sale continues to impact the Metro Atlanta residential real-estate market, a factor which leads Jenni Bonura, president and CEO of Harry Norman, Realtors, to anticipate a relatively flat year ahead. “The limited supply is expected to fall short of demand, the result of which will be maintenance in price levels, which while not expected to grow at the same levels as last year, will hold or show moderate growth up to about 5%,” says Bonura. Citing recent pended activity, Bonura estimates that currently there is a 2.2-month supply of available inventory, a situation owing to a broader economic uncertainty and a reluctance of some homeowners to sell in the current market because of increased mortgage costs. Also, if sales move slower, new construction of single-family homes will likely decrease as builders shift their focus to moving existing inventory, something that will only further exacerbate the problem. The inventory situation has improved since early last year, when inventory levels dipped to less than a one-month supply, the result of more homes having sold than hit the market. But even with 85% more homes available for sale at the end of January 2023 compared to the first of last year, there were still 40% fewer houses for sale than there were in January 2020. With Atlanta continuing to see an influx of new residents to the city, Bonura does not expect the housing supply to meet the current demand anytime soon. “Inventory levels will increase, but are expected to remain tight. These housing supply challenges will help to maintain home prices, which continues to experience net migration growth.”