After a stagnant month in June for the Cal-Culator, the Atlanta residential real estate index has risen 0.1 to bring the index to a 7.5. Gains in supply, home prices and regional trends contributed to the increase.
Atlanta Realtors Market Brief
Atlanta Realtor’s most recent market brief revealed drops in residential sales and inventory for the 11-county region of greater Atlanta. June residential sales were at 5,392, a decrease of 6.1 percent from the previous year. Atlanta area housing inventory totaled 16,304 units in June, a decrease of 2.3 percent from the previous year. As the Atlanta Business Chronicle put it: “Just because it’s scorching outside doesn’t mean residential sales in Atlanta are as hot.”
However, new listings totaled 5,848 – up 20.4 percent from June 2015 and up 7.7 percent from the previous month. The increase of new listings helped bring up the supply, as the supply for sales over a 12-month period increased to 3.6 months.
Housing trends have always played a part in figuring the Cal-Culator, and this month is no different. Online residential real estate site Trulia just ranked Atlanta as No. 2 top metro with the largest starter homes with a median size of 1,344 square feet – a great asset for Atlanta as 42 percent of Americans want a larger home.
The Atlanta Business Chronicle reported that the starter home market is the fastest-growing housing segment in Atlanta: “We’re starting to see more outer ring or outer suburban development in the Atlanta area. When the market really took a dive during the Great Recession things contracted and there wasn’t a lot of construction outside the Perimeter, but now we’re seeing growth at a good pace.”
A Promising Month Ahead
Despite the slight drop in residential sales and inventory, housing professionals are rightfully optimistic. Average and media home sales prices are outpacing 2015 figures with increasingly positive gains. The median sales price in Atlanta has increased 7.7 percent from June 2015 to $253,000, while the average sales price was $311,000 – up 3.3 percent from the previous year.
“We are halfway through 2016 and the unit sales are up over 7% with 1,812 units more than the same time last year,” said Atlanta Realtors President Lane McCormack. “We are excited to see our housing market remains strong and robust with average sales price increases year over year.”
The next Cal-Culator will be released September 13 and will hopefully reveal continued gains in inventory, home prices and sales.