Atlanta home sales and prices fall as mortgage rates drop

About 4,800 homes were sold in the area, down 16% from September, Ryan said.

“We have seen a steady decline in the market,” he said. “Activity has definitely slowed.”

Mortgage rates, while far from historic highs, have more than doubled over the past year, rising from about 3% to about 7%. These price increases discourage spending and lead to lower prices.

And it certainly works in homes — virtually every traffic light is flashing red.

Higher interest rates mean borrowers pay more on loans. This means higher monthly payments, which reduces the purchasing power of buyers.

According to Zillow, a home listing and research company, if you buy a $400,000 home with a 20% down payment, you’ll be paying about $1,770 a month on a 3% loan. At 6%, your monthly payment jumps by $570. 7% is $780 more.

Some prospective buyers are targeting cheaper housing. Some stop looking, at least for a while.

Fewer buyers means less competition for homes, and an intensifying bidding war that has driven prices up dramatically. There are also more homes on the market as homes that are listed for sale are not likely to go on sale any time soon.

Inventory (the number of homes available for sale) has surged 247% in the past five months, Ryan said.

Many potential buyers are still out there, but the balance has moved away from a perfect seller’s market. has been lowered.

Another sign of change is that many sellers are realizing they need to put more effort into their marketing and presentation to sell their homes, said Ryan.

Kristen Jones, Broker and Owner Around Re/Max Atlantasaid it was important not to look at recent comparisons because pandemic periods are so rare. I have.

Inventories may have increased dramatically, but they are still lower than in 2019. she said.

The sheer number of young professionals means demand won’t evaporate, says Jones, and the sheer number of baby boomers looking to downsize means owners willing to sell It means that there are

“There is still plenty of buyer demand and we expect to see more activity in early 2023, especially if inflation eases and interest rates drop a bit.,” she said.

Metro Atlanta*, Real Estate Market, October

snap shot

Median selling price: $379,455

Number of units sold: 4,800 units

Homes for sale: 13,470

30 year fixed rate mortgage: 6.95%

October compared to last year

Median selling price: +7.5%

Number of homes for sale: -31.8%

Homes for sale: +79.6%

30 year fixed rate mortgage: +125%

October signals a slowdown

Days on Market: 167% increase from June

Inventories (homes for sale): up 247% from June

Prices: Down 8% from June

Listed residential open houses: 247% increase

Sales volume: 31% decrease in one year

September-October comparison

2021: 1% price reduction

2022: 16% price reduction

2021: Sales down 3.2%

2022: Sales down 16.6%

*12 counties centering on Atlanta

Source: Georgia Multiple Listing Service, Federal Home Loan Mortgage Corp.


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