Looking for an affordable home in Atlanta can be a full-time job these days. And when you think about it, I guess that’s what Realtors are for. But an interesting trend has been happening in Georgia’s largest city of late: Home prices have been falling.
Are Atlanta Home Prices Dropping?
In an unexpected development, Atlanta home prices have recently dropped, although it’s not the only city experiencing a dip.
One reason why home prices may be falling in Atlanta is that it was a prominent market for ibuyers, who have largely gone out of business or pivoted into other commerce segments.
Real estate investors bought nearly 50% fewer homes in the first quarter of 2023 compared to the previous year, according to a recent RedFin study. That figure represents the largest annual decline ever.
“While investors have pumped the brakes on home purchases, they’re still scooping up a bigger share of homes than they were before the pandemic, which can create challenges for individual buyers at a time when there are so few homes for sale,” said Redfin Senior Economist Sheharyar Bokhari. “Investors have gravitated toward more affordable properties due to still-high housing costs and rising mortgage rates, which has left first-time homebuyers with fewer starter homes to choose from.”
Should You Still Buy A Home In Atlanta?
We all know that when a market is red-hot, prices are inflated. Atlanta is one of the hottest real estate markets in the nation, so the recent price drops sting a little bit.
At the same time, if you’re looking to buy a home, you should think about doing so when prices are dropping. Why? Because it’s going to save you money.
If you’re an investor, you know that it typically is a good investment to purchase when the pricing is low. Experienced investors know that investing is a long-term endeavor.
Should You Still Sell A Home In Atlanta?
When you’re trying to sell a home in a down market, the key to success is to move it as quick as possible. Usually that means you’re going to have to make a very attractive offer when it comes to pricing.
Where Are Home Prices Falling?
Here are the largest decline among the 40 metros Redfin analyzed in the first quarter of 2023:
- Nassau County, New York | -67.9%
- Atlanta | -66%
- Charlotte, NC | -66%
- Phoenix | -64.2%
- Nashville, TN | -60.4%
Las Vegas, Jacksonville, Philadelphia, Tampa, FL and Orlando, FL, all saw home price declines of more than 50%, the report says.
Overall, investors bought $27.5 billion worth of homes in U.S. metropolitan areas in the first quarter, says RedFin. That’s a decrease of 46.3% from $51.2 billion one year earlier and down 12.4% from $31.4 billion one quarter earlier. The typical home investors purchased cost $427,901, which means little changed from the prior quarter and a year earlier.
Final Word
Given how much homes cost in Atlanta, if you’re an investor, this may be a great time to buy. On the other hand, if you’re selling a home, you may get less than you anticipated.