Metro Atlanta home prices jump 10.3 percent since last year


The median sales price of a home sold in metro Atlanta last month jumped 10.3 percent from the same month last year, according to a report by Re/Max Georgia.

The region’s real estate market slowed as it typically does in the autumn, the number of sales falling from September this year. Compared to a year ago, sales were essentially flat – just 1 percent higher than October of 2016.

During the month, there were 7,243 home sales, according to Re/Max.

The market varies between cities, areas and even from neighborhood to neighborhood. But overall, the pattern of higher prices and slow sales is a sign that the market continues to be deviled by a lack of inventory – that is, a shortage in the number of homes listed for sale.

“A lack of inventory remains a significant strain on our local housing market,” said John Rainey, vice president of Re/Max Georgia.

The biggest price jump in metro Atlanta came in Cobb, where the median price in October was 14 percent higher than in October of last year. Second biggest was Clayton County, where prices were 11 percent higher.

Inventory is measured by how many months it would take at the current pace of sales to soak up all the homes listed. The smaller the number, the more likely it is that market power has tilted toward sellers: When demand is greater than supply, prices rise.

A balanced market – with roughly equal sway for both buyers and sellers – typically means a market with inventory of six or seven months, experts say.

In October, metro Atlanta inventory was 2.8 months, according to Re/Max.

The median home price in Atlanta is still one of the more affordable among large metros – and the salary needed to buy a house is likewise modest, according to a report by HSH.com, a California-based publisher of mortgage and loan information.

The median home price in metro Atlanta is $204,000, according to HSH, which bases its calculations on data from the National Association of Realtors. That is the 14th lowest median- priced home among the top 50 metro areas and also one of the lower priced in the south.

To buy that median-priced home in metro Atlanta requires a salary of $43,388, said HSH.

The necessary salary is slightly higher in Atlanta than in Birmingham, where a salary of $40,096 is needed to buy a median-priced home, but lower than Charlotte, where $47,468 is needed.

In Dallas, a salary of $59,518 a year is needed for a median-priced home, according to HSH.

MYAJC.COM: REAL JOURNALISM. REAL LOCAL IMPACT.

AJC Business reporter Michael E. Kanell keeps you updated on the latest news about jobs, housing and consumer issues in metro Atlanta and beyond. You'll find more on myAJC.com, including these stories:

Never miss a minute of what's happening in local business news. Subscribe to myAJC.com. 



Reader Comments ...


Next Up in Business

Delta pushes for anonymity in second airport opposition
Delta pushes for anonymity in second airport opposition

In the protracted fight over creating metro Atlanta’s second commercial airport in Paulding County, supporters of the idea have long alleged that Delta Air Lines is funding lawsuits filed by residents challenging that effort. Delta says it’s no secret that it opposes the commercialization of the Paulding airport, 38 miles northwest...
Atlanta-based SunTrust says data on 1.5 million customers tapped
Atlanta-based SunTrust says data on 1.5 million customers tapped

Atlanta-based SunTrust on Friday said it feared that a now-former employee had wrongly accessed basic information about 1.5 million customers. The company became aware in late February that the person – an employee at the time – had access to confidential information including names, addresses, phone numbers and some account balances. However...
Delta adding more inspections of its Boeing 737 engines
Delta adding more inspections of its Boeing 737 engines

In the wake of the Southwest Airlines engine failure that left one woman dead, Delta Air Lines said it is adding more inspections of those engines in its fleet. Atlanta-based Delta’s entire Boeing 737 fleet has the same type of engines that were in the Southwest plane that blew an engine Tuesday. The CFM56-7B engine that blew on the Southwest...
Former FAA administrator joins Delta board of directors
Former FAA administrator joins Delta board of directors

Michael Huerta, the former administrator of the Federal Aviation Administration is joining Delta Air Lines’ board of directors.  Huerta served a five-year term as FAA administrator after being nominated to the position by President Barack Obama and sworn into office in January 2013. He stepped down at the completion of his term...
Georgia loses jobs in March, but unemployment rate steady
Georgia loses jobs in March, but unemployment rate steady

After two strong months, Georgia’s economy lost jobs in March. The number of jobs dropped by 7,400 during the month after adding 9,200 in January and 18,300 in February. The unemployment rate, which is calculated from a different, less extensive survey, held steady at 4.4 percent, according to a report issued Thursday by the Georgia Department...
More Stories