Editor’s note: There is an updated report for this market, published in June of 2018. It contains more recent data and trends.
Recent forecasts for the real estate market in Atlanta suggest that home prices might rise more slowly over the coming months, compared to the last couple of years. This mirrors predictions and projections for the nation as a whole. Overall, the U.S. housing market is expected to cool down in 2018, at least where home prices is concerned.
But don’t let that fool you. The Atlanta real estate market is very hot right now, and this will likely carry over into 2018 to some degree. Strong demand and limited inventory are forcing home buyers to compete fiercely.
So the housing market forecast for Atlanta in 2018 seems to be that things will remain competitive, even though home prices might rise more slowly.
Forecast for Atlanta Housing Market: 2017 – 2018
In June, the real estate information company Zillow offered a prediction for the Atlanta real estate market that extended into the summer of 2018.
According to the company’s housing research team, the median home value in Atlanta, Georgia rose by nearly 9% over the last 12 months. (Again, this was ported in June of 2017.) Looking forward, however, the company’s forecast calls for a gain of only 2% over the next 12 months. That’s quite a reduction in terms of annual appreciation.
This more moderate forecast suggests that there is a cooling trend happening in the Atlanta real estate market right now, at least where house values are concerned.
But the local real estate scene will likely remain competitive for the foreseeable future. This is largely the result of limited inventory.
Competition Tight Due to Limited Inventory
In May 2017, the national real estate brokerage Redfin reported that the Atlanta housing market had only a three-month supply of homes. Six months of supply is considered to be a “balanced” real estate market.
Redfin also reported that the median sales price in Atlanta, Georgia rose to $285,000 in May. By their measurement, that was an increase of 5% from the previous year.
So it seems that Atlanta is still a seller’s market. There is a lot of demand for homes, but not enough supply to meet it. This is partly why home prices in the metro area rose well above average over the last year.
In June, RE/MAX Georgia vice president John Rainey told the Atlanta Journal Constitution:
“More inventory is what’s needed to help normalize the market and make it less competitive for buyers. The lack of inventory has driven up prices presenting a challenge for many first-time buyers who may discover that the typical starter home is suddenly out of their budget.”
A Look at National Real Estate Predictions
Last month, a panel of more than 100 real estate economists offered their predictions for the national housing market. On average, the group predicted that home values in the U.S. would rise by 3.65% in 2018.
That’s higher than the forecast for the Atlanta housing market. But these are different groups offering different outlooks. So perhaps we shouldn’t compare them.
The general consensus is that the Atlanta real estate market will remain competitive over the next year and probably beyond. This is the result of limited inventory and strong demand. But home prices in the area probably won’t rise as rapidly as they have in the past. Experts are predicting a cooling trend that could extend into 2018.
Disclaimer: This article contains predictions and forecasts for the Atlanta, Georgia housing market in 2017 and 2018. These forward-looking statements were provided by third parties not associated with our company. We have provided them here as an educational service to our readers. As a general rule, MetroDepth does not make claims or assertions about future housing and economic conditions.