2021 Year-End Recap

For the last several years, Atlanta has become one of the most sought-after relocation destinations due to relative affordability and a strong growth trajectory for employment opportunities. Like most of the economy, the real estate market is driven by supply and demand. Baring that in mind, with supply being lower than ever before in Metro Atlanta since 2011, and demand remaining at an all-time high, home prices skyrocketed throughout 2021 and will continue to do so throughout 2022.

The last quarter of 2021 saw a continued increase in average sales price from the previous quarter. The median price of a home sold in the 11-county area in the month of December was $375,000. This, as with previous quarters, is a result of diminishing inventory and increasing demand. Low inventory that just cannot maintain pace with the extreme level of demand can define a perfect storm. Based on closed sales, the lack of homes remains at a historic low, with only 1 Months of Supply.

The trend for the first quarter of 2022 is forecasted to be much more of the same. The ongoing constraint on the housing supply will push into 2022 and contribute to a further increase in home values. This steady decline of new listings will inevitably keep Atlanta in a seller’s market, and due to the imbalance of supply and demand, it is not foreseeable that it will become a buyer’s market in the near future.

The silver lining to it all is that mortgage rates remain at historic lows. If you are interested in learning more about the market, looking to buy, or looking to sell, our team of expert advisors at Engel and Völkers are here to help you capitalize on the current opportunity at hand. Timing is key, and we have our finger on the pulse to deliver you the results you are looking for.

To stay up to date with all market trends, visit www.evatlanta.com