Positive Signs
Written and Produced by Jennifer Boles
Deemed the number one real estate market to watch in 2023 by the National Association of Realtors, Atlanta certainly saw robust activity last year, but did it live up to expectations? “Yes, generally speaking,” says realtor Erin Yabroudy of Erin Yabroudy & Associates, Harry Norman Realtors. “Atlanta was consistently a top Metro area throughout the year according to Case-Shiller, often ranking as number one out of the top three Metro areas across the 20 biggest around the country.” From a transactional standpoint, Yabroudy concedes that 2023 proved to be softer than anticipated, owing to a persistent shortage of inventory and rising interest rates. But because buyer demand remained strong, outpacing inventory supply, home prices continued to rise, contributing to year-over-year increases.
Looking ahead, Yabroudy believes that the Metro area will remain a top market nationally for a couple of reasons. “Atlanta continues to attract businesses and industries, so the number of people moving to the area will remain steady. We will also continue to see an imbalance from a supply and demand perspective, which will cause home values to rise, although more modestly than they did during the post-pandemic boom years of 2020 to early 2022.” Depending on interest rates, an uptick in the total number of home sales compared to last year is possible, according to Yabroudy, who also anticipates home values to increase anywhere from 4% to 7%, with some areas possibly seeing even greater appreciation. “The imbalance of supply and demand will be the biggest driver in home value appreciation for 2024. Additionally, walkability is always a boost to home values, along with a home that has been updated or renovated to current market standards.”
By the Numbers
While a shortage of inventory put a damper on residential sales last year, the following figures from Q3 2023 market reports show that sales activity in the Metro Atlanta area was nonetheless robust.
12,452
Total homes sold in Q3
754
Residences selling for $1–2.5 million
74
Residences selling for over $2.5 million
25
Average days on the market
$531K
Average sold price
$46.8M
Listing price of Chestnut Hall in Sandy Springs, 2023’s most expensive listing