Tight supply stifles metro housing sales


Metro Atlanta housing got a healthy dose of same-old, same-old in two new reports.

Same: Rising prices.

Same: Fewer homes for sale.

Old: Not the lists of homes for sale – they get snapped up awfully fast, according to a report from Re/Max Georgia.

In other words, the story isn’t changing much. And the imbalance between supply and demand seems to be growing worse.

The average time-on-market in May was 43 days before a sale, down from 48 days in May 2016.

The quickest turnarounds were in Gwinnett and Cobb, where a home was on the market just 36 days on average. Among the core counties, the slowest sales were in Clayton, which averaged 62 days, according to Re/Max.

The median sale price in metro Atlanta last month was $232,500 – a 5.4 percent increase from the same month of last year, according to Re/Max.

A separate report, released by the Atlanta Realtors Association, showed the median price of a metro Atlanta home up slightly less, but with a higher closing price. Prices rose 4.9 percent in May from the same month a year ago, said the Realtors.

The median price in May was $258,000, according to the Realtors report, which was calculated for the association by First Multiple Listing Service. https://www.fmls.com/MemberLogin/login.cfm

Gwinnett led the region in May sales, with 1,195, followed by Fulton at 1,087 according to Re/Max. Cobb was third with 1,027 sales, and DeKalb followed with 797.

There were 9,317 sales in metro Atlanta overall, up just 2 percent from last year, the report said.

CONSTRUCTION COMPANIES SAY THEY HAVE TROUBLE FINDING WORKERS

But when it comes to diagnosing the market’s health, most experts focus on inventory – that is, the number of homes listed for sale. A healthy market has enough homes for sale to give buyers and sellers roughly equal footing in negotiations, but Atlanta has increasingly been a sellers’ market.

HOME FLIPPING UP SHARPLY OF LATE

A balanced market has inventory equal to six or seven months worth of sales. Metro Atlanta has just 2.4 months of supply, down from 2.9 months a year ago, according to Re/Max.

Experts have struggled to explain the shortage in home listings.

“We believe the continual rise in prices along with very limited inventory in metro-Atlanta may be keeping some potential move-up home buyers from listing their current properties,” he said.

RISING PRICES AND FIRST-TIME BUYERS



Reader Comments ...


Next Up in Business

Like your workplace, tell us about it

You say you work for a great company with an encouraging and inclusive atmosphere. You say you have good benefits. You say your bosses are fair, sympathetic, understanding. Then why not share the good news? And, there’s still time to do it because the nomination deadline has been extended to Nov. 17. In March, The Atlanta Journal-Constitution...
Coke rejects charges of deceit in Diet Coke’s name
Coke rejects charges of deceit in Diet Coke’s name

A lawsuit has been filed against Coca-Cola charging the company with falsely advertising Diet Coke — allegations that the company vehemently rejects. The plaintiffs say that, instead of aiding in weight loss, the drink actually promotes weight gain and – worse – triggers other health problems, according to a report in Top Class Actions...
Wes Moss: Why bitcoin is a big deal, and why you should be careful
Wes Moss: Why bitcoin is a big deal, and why you should be careful

Bitcoin. It’s everywhere. Thanks to its skyrocketing value, it’s been a regular topic on the front page of every financial website. One bitcoin is currently worth $5,500, up from $1,000 in December. I hear what you’re thinking. Wow. So, what’s bitcoin? And am I missing out on something? Bitcoin, simply put, is a currency, similar...
Athenahealth cutting jobs, but outlook in Atlanta unclear
Athenahealth cutting jobs, but outlook in Atlanta unclear

Athenahealth, the Massachusetts-based electronic medical records company with a substantial operation in metro Atlanta, said Thursday it plans to cut its workforce by 9 percent as part of a cost cutting plan. It’s unclear how many jobs in Atlanta might be affected, but before Thursday, Athenahealth had been in growth mode in the Atlanta area...
Video: Georgia brings its bid for Amazon HQ2 to Seattle
Video: Georgia brings its bid for Amazon HQ2 to Seattle

A top Georgia recruiter on Thursday walked into Amazon’s Day One tower in downtown Seattle to hand-deliver the state’s pitch for the e-commerce giant’s second headquarters. And she had a camera crew in tow. Brittany Holtzclaw, director of logistics, energy, agribusiness and food processing for the state’s economic development...
More Stories