December 2020 Market Update

As this atypical year comes to a close, we are able to reflect on this year’s unprecedented market trends and performance throughout 2020.

Across metro-Atlanta, we experienced a drastic 40% drop in inventory levels compared to 2019, meaning that there were substantially less homes for sale this year. And while every segment of the market was affected by this, Single-Family Homes endured the most significant decrease of about 52% throughout the year.

As a direct result of this lessened inventory, we saw a large spike in demand this year of roughly 20% which caused a momentous rise in the number of homes sold this year, a nearly 15% increase. And, while the demand for homes became greater, the average price for homes surged by about 13%. 

One of the leading indicators of the market, months of supply, saw a consistent drop throughout 2020; with an average of 1.7 months of supply in 2020, there was a  52% decrease from 2019. The months’ supply refers to the number of months it would take for the current inventory of homes on the market to sell given the current sales-pace. By definition, a lower level of months’ supply leads to an increase in price at a quicker rate, which was seen this year.

In short, the demand for homes consistently rose this year while there was very little inventory to meet buyer needs. And, as a result, prices increased to pacify this demand and the months of supply abated. This year was the perfect time to sell, and due to extremely low interest rates, this was also a great year to buy.

As we head into the new year, remember that Engel & Völkers Atlanta is your resource for an in depth analysis of market trends and performance. Visit evatlanta.com for a more information, or to speak to one of our advisors.