The Atlanta real estate market in 2024 is shaping up to be more difficult than previous years as home affordability continues to be a theme. As interest rates climb, the real estate industry as a whole has responded by contracting.
That means it’s getting more difficult to buy land in Georgia as property values rise across Georgia of late, but experts are expecting things to cool off at some point.
According to Realtor.com, existing home sales will rise, but not as much as in recent years past. Here’s the forecast:
Metro Atlanta Real Estate Outlook: 2024
Two years ago, Atlanta had perhaps the hottest real estate market, and it’s still the leading housing market to watch, although the reasons why are not as plentiful as they have been in years past.
Will 2024 Be a Better Time To Buy a Home?
The year 2024 will be one in which homeowners face increased prices for homes. Average home values in the metro Atlanta area will mimic much of the nation, which is forecast to see as much as 6% hikes.
Not every location will have home values that increase though. Depending on the neighborhood, town, village and subdivision, some homes see drops in price.
Still, some ominous signs are starting to appear in the U.S. housing market based on national trends, according to Realtor.com.
- Homes actively for sale have fallen 2% compared to last year.
- Unsold homes have fallen 3.7% compared to last year.
- The median price of homes for sale in October 2023 remained stable compared to the same time last year.
- Homes spent 50 days on the market – one day shorter than last year and more than two weeks shorter than before the COVID-19 pandemic.
Is Atlanta’s Housing Market Overpriced?
Atlanta’s housing market has been one of the most overpriced in the Southeast. According to a study from Florida Atlantic University, metro Atlanta was the second most–overpriced housing market in 2023, only behind Coral Springs, Florida.
If you live in Atlanta, you’ll be feeling some pain in your wallet, and you might be paying more than you should be. According to data from Florida Atlantic University, Atlanta has the most overpriced housing market in the United States.May 9, 2023
Is 2024 a Good Time To Buy a Home In Georgia?
In September 2023, homes in Georgia sold for 98.3% of their listed price. This means that sellers are willing to negotiate and offer discounts. The GDP of Georgia grew by 5.8% in 2022. This shows that real estate property investment is a beneficial option for potential home-buyers.
Will Prices Go Up Or Down In 2024 In Atlanta?
Prices in Atlanta, Georgia are expected to grow on average of 6% based on Zillow data. That represents a 1% increase compared to the 4% annual growth experienced before the COVID-19 pandemic.
There will be a glut of inventory of homes for sale in the metro area, and they will likely take longer to get offers and sales. How to afford a home will also be more of a challenge this year as economic factors loom, expert data says.
As home shoppers are expected to pre-qualify for a mortgage, there will be more homes for sale, homes will likely take longer to sell, and buyers will not face the extreme competition that was commonplace over the past few year.
If you have a home for rent inside the Perimeter, finding a tenant shouldn’t be a problem as favorable rents will drive strong demand from the north side of the city to the southern end.
Will House Prices Be Cheaper This Year?
With so many people moving to Atlanta annually, rather than become cheaper, leading real estate market experts expect home prices to increase slower than they have over the past two years.
Atlanta, one of the fast-growing cities when it comes to home sales, is not unlike other large Southern cities in that it is expected to continue to be a red-hot market. That means a dip in housing prices is unlikely.
One of the main factors that will influence home prices is the economic landscape of the United States. Namely, the incremental movements by the Federal Reserve to get inflation in check.
While interest rates are ticking upward, the chance that a full-blown recession takes hold in 2023 can’t be entirely discounted. But what such a move will no doubt do is slow down the mortgage industry.
Rising mortgage rates are expected to continue to shed competition among people looking to buy a home. While a buyers market is a possibility in some areas, for metro Atlanta, it is anticipated that real estate prices will hold up just enough that such a market won’t firmly take hold.
Home shoppers priced out of the market will likely create pressures on the rent market, boosting prices once again.
Home Prices On Atlanta’s Southside: Up
One of the most dramatic increases in home prices is happening on Atlanta’s southside, below Interstate 20. Take for instance the Sylvan Hills neighborhood.
Sylvan Hills
The average home prices in Sylvan Hills is $232,000, according to RedFin.
The area is only four miles from downtown Atlanta and is a historically economically depressed area, but not anymore. Gentrification is happening there and in similar areas on a large scale.
Like Capitol View just north, Sylvan Hills homes sell for about 4% below list price and pending sales last around 62 days.
Adair Park
Adair Park over the past five years has had some of the hottest real estate parcels in Atlanta.
Bordered by the West End on one side and the Pittsburgh community on the other, Adair Park has benefited from its close proximity to downtown Atlanta as well as Hartsfield-Jackson Airport.
The average home price in Adair Park is around $240,000, according to RedFin. Homes there sell for about 4% below list price and sales are pending around 41 days.
Atlanta Beltline
But we can’t talk about Atlanta housing trends and real estate outlook with the “B” word: Beltline.
Nothing has shaped Atlanta real estate prices more than the Atlanta Beltline project, which continues to finish a 22-mile loop around the city’s best neighborhoods.
Redevelopment, such as the opening of Krog Street Market and other projects have skewed home prices in the city’s interior in many cases leading to double digit growth.
As more projects see the light of day, we can only predict that home values around the Eastside, Westside and Southside Trails will continue to rise.
Read more: This People Are Having Too Much Fun On The Atlanta Beltline
Overall, many people, especially those relocating to Atlanta, continue to opt for the suburbs. They also are choosing areas farther out, including Dawsonville, Cumming, Stockbridge and Cartersville.
The Georgia real estate market is up 20% over the decade, with most of that confined to the metro Atlanta area.
Here Is How The Georgia Real Estate Market Has Grown From 2010-2018
- 2010 -4.41%
- 2011 -7.33%
- 2012 -1.75%
- 2013 5.14%
- 2014 6.59%
- 2015 6.37%
- 2016 6.69%
- 2017 7.14%
- 2018 8.23%
The Georgia Home Price Index is on an unprecedented streak, having risen for the last 26 consecutive quarters.
Final Word
Homeownership is becoming attainable for more Americans than ever before. And especially is that the case in Georgia.
The Peach State’s largest city has one of the best real estate markets in the country, with affordable housing in every quadrant of the city. Large backyards, manicured parcels and strong neighborhoods with ample dining amenities make it one of the top places for transplants.
Not to mention that the city’s dining scene is the best in the Southeast. Looking for a home? Check out our Real Estate Resource Page.
Keep up with what’s going on in Atlanta’s real estate scene here with our Apartment Guide.