Understanding Atlanta Real Estate Supply & Demand 2017

July 10, 2017

We all realize that the best time to sell anything is when demand is high and the supply of that item is limited. Real estate prices rise and fall based on the
laws of supply and demand. Supply is the total amount of houses for sale available on the market right now. In real estate, there is a guideline that often applies; when there is less than a 6-month supply of inventory available, we are in a seller’s market and we will see appreciation. Between 6-7 months is a neutral market, where prices will increase at the rate of inflation. More than a 7-month supply means we are in a buyer’s market and should expect depreciation in home values.


Metro Atlanta has a major supply problem in most selling price points. Demand for housing continues to be strong throughout 2017, but supply is struggling to keep up, and this trend is likely to continue into 2018. there is currently  2.8 months of supply, and houses are going under contract fast. In Q1 2017, properties sold in metro Atlanta were typically on the market for 12 days or less. This will continue, unless more listings come to the market.


In Atlanta we’ve underbuilt housing, particularly single-family homes, for years, and Millennial housing needs will be immense for the next two decades. The down turn of the economy, and the long recovery, was the biggest reason for this lack of new housing options. The impact posed by a tight housing supply is that it leads to continued upward trends on home prices. This could pose a problem of a lack of affordability for first-time homebuyers, though.

With new and existing supply failing to catch up with demand, Atlanta will continue to see homes going under contract at this remarkably fast pace of under two weeks.

Inventory of homes for sale is still well below the 6-month supply needed for a normal market. And the supply will continue to ‘fail to catch up with demand’ if a ‘sizable’ supply does not enter the market. If you are going to sell, now may be the time to take advantage of the ready, willing, and able buyers that are still out searching for your house.


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