The Atlanta Journal-Constitution reports that as the housing market in Metro Atlanta readies for spring, March witnessed a notable uptick in sales, with a 20% surge from February, accompanied by a rise in the number of homes listed, according to data from the Georgia Multiple Listing Services.
But the real estate landscape continues to grapple with challenges such as housing supply, which remains a key concern. John Ryan, chief marketing officer for Georgia MLS, has noticed “some signs of improvement, but the market is still challenged.”
In the 12-county core centered around Atlanta, a total of 4,843 homes were sold last month, with a median price of $402,000. Furthermore, the inventory of homes listed for sale witnessed a 6% increase during the same period. Despite these improvements, the current listings represent less than three months of sales, indicating a market still in flux.
While the median sales price in March saw a modest 6% increase from the previous year, the region’s affordability remains a concern. Atlanta’s housing market has become notably overpriced, with home prices soaring over the past decade.
Economists warn of a potential correction in prices as the market continues to face affordability constraints.
Kristen Jones, owner of Re/Max Around Atlanta, challenged the notion of Atlanta being overpriced, citing market-driven values based on supply and demand dynamics. “And demand still far outweighs supply in Atlanta with no end in sight,” Jones observed.
However, the housing market’s challenges extend beyond pricing concerns. Zoning laws limiting higher-density housing options have contributed to supply shortages, exacerbating the affordability issue. Efforts to address zoning regulations and increase housing production are deemed essential to alleviate pressure on prices.
Despite the recent surge in sales and listings, constraints persist on both the supply and demand sides, with mortgage rates posing a significant challenge to prospective buyers. With rates on the rise, buyers face heightened monthly costs, further complicating affordability issues in the housing market.