Historically, the Georgia real estate market has done pretty well for itself- falling in favor with sellers for its high demand, low-to-mid supply, and competitive prices.
The average price of a fixed-rate mortgage in the US (including Georgia) has soared, and has put some stress on the housing market as a whole. How has this impacted the property market in Georgia- and what does it mean for the year ahead?
Georgia Housing Market Trends
Here are the trends you need to know about in the Georgia real estate market this year.
Median Home Prices
The average home prices in Georgia are up year over year- and have been so far in 2023.
In January, the median price was $332,300- a 2.9% YOY increase. Numbers rose to $344,900 in February (3.2% growth year over year), then rose again slightly in March to $346,700. The difference is less compared to last year- with growth of just 0.3%.
Median home prices in the Atlanta metro area national were significantly higher- at $390,000.
Number of Homes Sold
There has been a fairly large drop year over year in the total number of houses sold in Georgia- but figures are improving as the year progresses.
March 2023 saw just over 12,000 Georgia properties sold- compared to around 8,800 in the previous month.
Both months were down on the year before- 24.3% in February, and 21.4% in March. The trend seems to be moving in the right direction, despite an undeniably cooled market.
Average Time Spent on the Market
Houses in Georgia have not been spending this long in the market since before the pandemic- which is frustrating for motivated sellers who want to move quickly but don't want to drop their asking prices.
The most recent median was 44 days (more than double the previous year), and post-pandemic highs of 54 days lasted two months (Jan and Feb 2023).
Housing Inventory: Number of Homes Available
Georgia has had a limited supply of available houses compared to the demand for quite some time, and it is still the case now despite an overall increase in inventory.
The number of active listings and homes for sale has been up year over year consistently for the last several months- but not new listings.
In March, there were almost 40,000 homes available- 14% more than the previous year- but there were 17% fewer new listings added.
As one of the higher-ranked states for foreclosure rates, the Georgia real estate market is sometimes impacted by mortgage failure. The most recent numbers available show that one in every 3899 homes foreclosed.
Other Must-Know Statistics for the Georgia Real Estate Market
The sale-to-list price in Georgia has been below 100% (meaning buyers have typically been paying below list price) since July 2022.
It currently sits at 98.2%- below the national average by more than a point, and 3.0% down for Georgia year-over-year.
Houses with Price Drops
There was a 10% increase on houses dropping their prices between March 2022 and March 2023. This figure has been fairly consistent since the start of the year, and represents around one-quarter of all homes sold.
Houses Selling Above Asking Prices
Houses selling above list price (as a percentage) has increased from 18% to 24.5% since the beginning of 2023- but it is still down on the previous year by more than 25%.
Inventory Supply in Months
Georgia currently has a two-month supply of homes for sale- not enough to make it a balanced market.
Georgia Housing Market Forecast
High demand for houses in Georgia- and increases to the low inventory from last year- make it a market full of potential right now.
It has seen similar trends to other states following the mortgage interest rate hike, but is overall in a decent position.
Sellers' Marker with Slowly Rising House Prices
Professional predictions put Georgia house prices on a steady incline for the foreseeable future.
Overall, the supply remains a little short to keep up with demands, and the market is expected to be favorable for sellers this year- sticking with the trends of recent times in the state.
Predictions for the US Housing Market in the Coming Year
Here is an overview of the real estate market forecast for the US over the next year.
Homes Will Become Less Affordable- Despite Potentially Lower Home Prices
Most analysts believe home prices will fall, but not enough to offset high-interest rates- especially when the supply is low.
There are some experts who think they won't drop at all- and could, in fact, increase instead in markets where demand is high and the buyers are competitive.
Either way, the forecast for the US housing market is a drop in affordability- whether or not the median price increases.
The rising mortgage rates mean higher monthly payments or larger down payments- which could price out many buyers in many areas.
Mortgage Rates are Predicted to Continue Rising
Experts believe that mortgage rates will keep increasing.
They predict that because of ongoing inflation, a tense geopolitical climate, and the fears of a possible recession on the horizon- the interest on mortgages is not going to drive many people away from buying for quite a while.
The Housing Market is Expected to Slow Down with Decreased Home Sales Nationwide
Because of the increased mortgage interest rates, the country will most likely see a decrease in the number of homes sold- as well as the possibility of lower sale prices.
It is also probable that the median days taken to sell a house will continue to increase throughout the year.
Is There Likely to Be a Real Estate Market Crash in Georgia?
The short answer to whether or not Georgia is in line for a housing market crash is no.
Nothing about the current trends or forecast suggests an imminent disaster, and overall, Georgia's real estate market looks fairly robust for the time being.
Despite the pressure of rising mortgages, Georgia remains a strong state- with below the average national unemployment rate, a healthy housing availability, and a decent pool of prospective buyers to keep things moving.
The Bottom Line
Overall, the Georgia housing market is in a reasonably steady position. Taken into account the market rush following the pandemic and the recent hits from inflation and interest rates, things are coping reasonably well.
With a continued year-over-year increase in housing inventory, and comparatively low interest rates for the nation right now, Georgia is an attractive real estate market for new buyers.
There could be an interesting year ahead- with longer market stays likely to continue and the possibility of a shift in pricing trends- but if continued demand holds fast, there is not too much to worry about.
What areas of Georgia have the most competitive real estate market trends?
North Decatur, Martinez, and Trion are the three most competitive cities right now in the Georgia housing market.
Is this a good time to sell a house in Georgia?
Overall, yes- it is a good time to sell- especially if you wait for the June high season.
House prices are steady, so more people are likely to be able to afford them- and there is not a massive supply, so there is not too much competition.
When is the best time to buy properties in Georgia?
April is generally the fastest month for Georgia real estate sales and is considered a good time of year to buy.
Earlier is better, with house prices hitting their lowest in the early months, but you may be faced with pretty limited options outside of peak selling season (June).