Home Prices Are Dropping In Atlanta: Should You Still Buy Or Sell?

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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.

If your home is priced below some of the comparable structures, you’ll know pretty quickly by the interest you draw. Depending on your competition, you may need to adjust the price after a month or so to gain some traction.
 
Don’t underestimate the power of upgrading your home’s curb appeal as well as making minor cosmetic fixes.

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.

Read about cheap homes for sale in Atlanta.

Tee Johnson: Tee Johnson is the co-founder of AtlantaFi.com and as an unofficial ambassador of the city, she's a lover of all things Atlanta. She writes about Travel News, Events, Business, Hair Care (Wigs!) and Money.