Georgia

There is no shortage of demand for homes in Georgia! Inventory is selling quickly as Metro-Atlanta affordability continues to draw in-migration.

To give some historical context: Median prices fell throughout fall 2022 as the Federal Reserve raised interest rates. We started 2023 with median prices at $345K ($375K in Atlanta Metro), followed by prices rising through the spring (no doubt driven by scarcity). Then prices slid slowly downward to end the year at $370K ($400K in Atlanta Metro). These prices are still below the national average, making Atlanta more affordable than most major metros.

Even during the holidays, homes were under contract in 3 weeks (December median D.O.M.). Georgia ended 2023 with 2.5 months of inventory / 2.3 months in Metro-Atlanta.

Nonetheless, agents are feeling the pinch as transaction volume drops dramatically. At the end of 2023, pending sales were 44% lower than the March peak. Georgia has not seen pending sales this low since 2010.

The decline in sales was undoubtedly driven by lack of inventory. In Q4 we saw a 41% drop in new listings.

Hopefully we will see interest rates drop in 2024, which should encourage sellers to make moves and ease monthly-payment-shock for buyers.

January 2021 – January 2024 (FMLS)

January 2021 – January 2024 (FMLS)

Actionable Advice for Georgia Agents

Stay the course.
We will likely see a “cleansing” in the industry. Let’s face it, lots of people got their licenses while sitting at home during the pandemic, and then made easy money during the housing boom. Now is the time for good agents to stick to the basics and keep in touch with their sphere as “weekend agents” go back to the office.

Focus on your listing game.
Buyers continue to be plentiful in Georgia, but agents with listings hold the keys to the kingdom in a seller’s market.

Keep in touch with discouraged buyers.
Between price increases, inventory shortage and interest rate hikes, there are a lot of discouraged buyers sitting on the sidelines. By all indications, interest rates are likely to remain steady at least until the fall. When rates do come down, we will see more options for buyers. Until then, keep in touch with buyers — not necessarily encouraging them to resume searching where there is no inventory, but providing market information and a strong personal connection.

Hang in there!