Atlanta housing market sees drop in demand, increase in prices

Even though August saw a small dip in demand for single family residential properties, prices are continuing to rise.

According to the Atlanta Realtors (formerly the Atlanta Board of Realtors) citing data from the First Multiple Listing Service, August residential sales were at 5,180, a drop of 5.5 percent from August 2015.

However, average and median sales prices are still pushing ahead 2015’s numbers. The median sales price in August was $242,000, an increase of 8.5 percent from last August, while the average sales price was $306,000, an increase of 6.6 percent from August 2015.

Atlanta Realtors President Lane McCormack said the Atlanta metro housing market remains robust through the summer months.

“Inventory remains low amid great demand,” she said in a statement. “Average sales price shows a 6 percent increase over prior year. Unit sales have increased by 3.7 percent.”

The 11 area counties in metro Atlanta had 15,994 units in its August housing inventory, a drop of 4.9 percent from last August. But, new listings totaled 4,883, which is up 2.2 percent from August 2015 but down 6.1 percent from July. The supply for sales over a 12-month period fell to 3.5 months.

McCormack added buyers remain engaged and active in the market with remaining low interest rates.

Patrick Wood, vice president at Dorsey Alston, Realtors, said the wild market of previous years where values were rising too fast is over.

“We are in a healthy, steady market where appreciation in more in line with where it should be,” he said. “It is a ‘true’ market which is encouraging for the overall health of Atlanta real estate.”

According to real estate research firm Metrostudy Corp.’s second-quarter housing report, field research builders started construction on 5,977 new homes — up 21 percent from the first quarter. Atlanta’s single-family annual starts totaled 20,449 units over the 12 months ending in the second quarter of 2016, up 13 percent year-over-year, and is at its highest construction starts level since 2008.

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