Metro Atlanta home sales slow in June, affordable housing hard to find

The number of homes listed for sale now represents about three months of sales. That’s about half of what experts consider a balanced market in which buyers and sellers have roughly equal bargaining power, but more than double the ratio of two years ago.

Since the beginning of 2022, the number of homes listed for sale has increased and sales have slowed. Back when listings were much lower and sales were higher, homes for sale were disappearing from the market, but now they are staying on the market longer, according to national brokerage Realtor.com.

About 5,000 homes were sold last month in the 12-county core of metro Atlanta, about 13% fewer than the same month a year ago, Georgia MLS said. The median price of a home sold in June was $432,050, more than 5% higher than a year ago — a modest increase from double-digit increases in 2020 and 2021.

Affordability is a barrier that slows sales — a problem especially for young Atlantans just starting their careers.

Inflation on various goods and services is a problem, but gasoline and grocery prices have largely stabilized while average wages and incomes are rising.

However, housing is one component of inflation that has far outpaced wages. The median price of a home sold in metro Atlanta has climbed 56% since spring 2020, more than double the improvement in income, according to Georgia MLS and the Bureau of Labor Statistics.

Four years ago, the median home price in metro Atlanta was $265,000.

Worse, with population growth and construction lagging after years of slow activity following the Great Recession, the number of modestly priced homes for sale in or near Atlanta has declined dramatically. Some homes are selling for less than $250,000, and anything in that price range is selling fast. Last month, the biggest sales were in the $300,000 to $400,000 range.

The lion’s share of ads was much higher.

And as if rising prices and a lack of affordable housing weren’t enough, rising mortgage rates have led to much higher monthly payments for buyers. Rates, which had been at historically low levels for years, have been climbing in 2022 and 2023 as the Federal Reserve has launched its anti-inflation campaign.

The average rate peaked last fall at nearly 8%, and that was for someone with a very good credit history. More recently, the average rate has fallen below 7%, but not by much, according to the Federal Home Loan Corp., which tracks mortgage rates.

Many potential buyers have never seen rates close to current levels: the current rate is higher than it was between April 2002 and last fall.

Some buyers have savings or family money to pay cash. Those who can’t pay cash must resign themselves to higher rates, while planning to refinance their loan when rates drop.

A day.

Those who don’t need to buy will have to bide their time, said Kristen Jones, a broker and owner of Re/Max Around Atlanta. “I think the floodgates would open if rates went below 6%.”

Metro Atlanta Real Estate Market

June Snapshot

Median sale price: $432,050

Number of sales: 5,004

For sale: 16,686

June real estate market compared to a year ago

Median sales price: up 5.4%

Houses sold: down 13.3%

On sale: up 62.8%

Source: Georgia Multiple Listing Services