Good news for people looking to sell their home in the Atlanta metropolitan area. Atlanta, GA is a seller’s market.
The high demand for housing coupled with relatively low supply gives you clear selling power and the upper hand in the current Atlanta real estate climate. So don’t settle for anything but the best.
Overview of Demand, Prices & Supply
Despite lingering economic uncertainty and a 3% increase in unemployment in the metro area from Nov 2019 to Nov 2020, the Atlanta housing market is still going strong. Plus, a growing number of Atlanta real estate reports show a fast pace recovery from the effects of the pandemic.
The slight increase in unemployment in Atlanta (and across the country) from the pandemic last year didn’t reverse the relatively high demand for housing.
There are three key factors driving this continued demand:
- Growing population: The population of the Atlanta metro area is currently 5.9 million, a 1.86% increase from 2020. Much of this migration is driven by the city’s strong business climate and relative affordability. By 2050, Atlanta Regional Commission projects the 21-county Atlanta region could add a whopping 2.9 million people.
- Job growth: Total nonfarm employment for the Atlanta-Sandy Springs-Roswell Metro GA Area in October 2020 was down 3.1% over the year. But this decline was considerably less than the national job decline of 6% during the same period. And Atlanta is expected to recover from the economic impact of COVID-19 faster than the majority of the country.
- Affordability: Atlanta has a mid-range housing affordability index of 4/10. The cost of living in Atlanta though is considerably less than in areas like New York, San Francisco, and Boston. The city’s mid-range affordability, entertainment options, current record-low interest rates, and year-round fun make it a comfortable place to live, work, and play.
The increase in the price of homes in Atlanta could be among the largest in the nation in 2021. High demand is met with relatively low inventory, driving a sustained upward trend in Atlanta home prices.
A recent Atlanta real estate market forecast projects the price of homes to grow 6.7% in 2021, compared to a 5.7% increase nationally — putting metro Atlanta in the top 20 markets expected to experience the largest housing price increases.
The metro Atlanta real estate market has been tilting in favor of sellers for several years now. During COVID-19, the relative shortage of homes has been even more pronounced.
Inventory totaled 12,291 housing units in October 2020, a sharp decrease of 36.9% from October 2019. New listings were down 9.5% from October 2019 to October 2020, totaling just 8,122.
These factors should continue to put upward pressure on sales prices over the next few months, which is great news for house sellers.
Key Atlanta Real Estate Market Stats
- Over the last five years, the price of real estate in Atlanta has increased by 49%.
- Since 2012, median home prices have appreciated by nearly 117%.
- Home values in Atlanta increased by 5.6% over the past year and are projected to grow by another 9.8% in the next year.
- The typical value of the middle price tier of homes in Atlanta is $303,987 according to the Zillow Home Value Index (ZHVI) for Atlanta.
- Average list price of homes in Atlanta is $340K (as of Dec 2020), trending up 9.7% year-over-year.
- Average listing price per square foot is $231.
- Average sale price in Atlanta is $329K.
- 50% of the households in the metro area rent rather than own.
- On average, homes in Atlanta, GA sell after 63 days on the market (unless you sell to a cash buyer like us).
- Since the last Atlanta GA real estate market peak in May 2006, home prices have increased by 14.2%.
- Since the last real estate market bottom in Atlanta in March 2012, home prices have increased by 123.7%.
- Atlanta has a mid-range housing affordability index of 4/10, which partly explains why there are so many renters in Atlanta.
- The worst time to sell your home in Atlanta seems to be in February when sales prices are down 12.61% on average (based on transactional data from the past 7 years) and the best time seems to be in June (up 5.32%) and November (up 5.44%).
Considerations for Sellers
The bottom line as a seller in Atlanta is that you want to get as much for your house as possible, right? But one thing many people don’t consider is how much it costs you to hold onto your house.
These costs may include your monthly mortgage payments, utilities, and maintenance costs. And if you’re still within the first 10 years of the mortgage, the total monthly payment probably includes costs other than the principal you owe such as homeowners insurance and taxes that may be held in escrow.
Let’s say you want to sell your house for $400,000 and your mortgage payment is $2,400/mo, taxes $200/mo, $100/mo for insurance, and $100/mo for maintenance. Those expenses add up to $2,800 per month in “non-equity building” expenses. If it takes you 3 months to sell your house through an Atlanta Georgia real estate agent for that $400,000, it could cost you upwards of $8,400 in direct “holding costs.” You may also have to pay $24,000 in realtor fees (assuming the standard 3% for the buyer’s agent + 3% for your selling agent).
All in all, this could total $32,400 in LOST money. And that doesn’t account for the valuable time lost, the stress of thinking about your property sitting on the market, and the opportunity cost of what you could have been doing with that extra bank during that time. But, what if we could give you a maximum cash offer today to avoid all of that?
The question now is, what will happen to the Atlanta real estate market going forward? Will it remain skewed to sellers amid the ongoing pandemic? Regardless of the short-term effects of COVID-19, historic and predictive market data indicates the Atlanta housing market will likely remain strong and in your favor moving forward.
So if you’re considering selling your house, don’t settle for anything but the best. Go with a deal that offers you the most capital AND the least amount of stress, time, and commitment. In a market that’s tipped to your benefit, don’t get tied into paying high real estate commissions, closing costs, and repair fees.
At JWS Acquisitions, we pride ourselves on being experts in the Atlanta real estate market and providing the easiest and most transparent way to sell your home. We provide free cash offers on homes in Atlanta so you can sell faster and for more money.
No matter the condition of your home or preferred timeframe to close, you can get a cash estimate on your home with:
- No risks or obligations
- No closing costs or realtor commissions
- No hidden fees