A Year in Review: 2024 Atlanta Real Estate Market Update

2024 has been quite the ride for Atlanta real estate—no matter if you were buying or selling. 

From rising mortgage rates to more inventory to a nationwide lawsuit, this year has brought some important shifts for buyers, sellers, and real estate professionals alike. 

Whether you’re curious about how these trends impacted home prices or what it means for your next move, The LaMon Team has made a list of the top four factors that have shaped our real estate market this year. 

Let’s dive in.

1. Housing Inventory Fluctuations

Low inventory levels have been a persistent issue in 2024, which further fueled competition among buyers. However, a late-year increase in listings brought some relief. By September 2024, inventory levels surged by over 20% compared to the previous month, thanks in part to price drops and seasonal shifts in the housing market.

While this inventory boost has provided buyers with more options, the overall shortage of available homes continues to drive up prices in many areas, keeping the market competitive despite the rise in listings.

2. Interest Rates

One of the most significant trends this year has been the ever-evolving interest rates. Mortgage rates remained elevated for much of the year, making borrowing more expensive for homebuyers. For example, the 30-year fixed mortgage rate fluctuated between 6.5% and 7.2%, according to Freddie Mac, a considerable jump from pre-pandemic lows. 

This rise in rates had a direct impact on monthly payments, with buyers facing higher costs to finance their homes. These elevated rates discouraged some potential buyers, cooling demand and contributing to slower market activity compared to recent years.

Even the beginning of 2024’s 4th quarter saw some yo-yo interest rates. However, experts predict that while rates may fluctuate in the near term, they are expected to gradually decrease over the next year, providing some relief for buyers looking to enter the market.

Here is an in-depth overview of Q3's market trends:

3. Home Affordability Challenges

Affordability has been a key concern throughout 2024, driven by the combination of higher interest rates and rising home prices. According to a report by Bankrate, housing affordability hit its lowest point in a decade this past year. 

With home prices still climbing in many markets, the median U.S. homebuyer was spending more than 30% of their income on housing, exceeding the typical affordability threshold. This has made it harder for first-time buyers to enter the market and has widened the gap between potential homeowners and those being priced out. However, we expect to see these difficulties ease slightly with lowering interest rates.

4. NAR Lawsuit Impact

Of course, one of the most noteworthy legal developments this year has been the National Association of Realtors (NAR) lawsuit—which resulted in a $2 billion settlement. The lawsuit targeted buyer-broker commissions and has prompted changes in how real estate commissions are structured. 

As a result, it’s crucial for buyers to have a conversation with their agents to discuss negotiating commissions with the seller—or even wrapping it up into their offer. This legal shift is expected to have a lasting impact on the industry for years to come.

How has this affected Atlanta?

In 2024, the Atlanta real estate market remained strong despite the challenges of high interest rates and limited inventory. With mortgage rates fluctuating between 6% and 7%, affordability became a key issue for many buyers, but demand for homes remained steady—particularly in more affordable suburbs around Atlanta. So much so that the median home price continued to climb, showing a modest increase in value from the previous year.

Inventory shortages were a significant factor throughout the first half of the year, making it tougher for buyers to find available properties. However, the tide has changed and we now believe the current market is the best market we’ve seen for Atlanta buyers in the last five years. 

More inventory, means more choice and sellers don’t have all the power. Many sellers are now willing to work with buyers – offering credits, price cuts and creative options to help get their home sold in a more balanced market.

So, as we move into 2025, it’s important to work with a real estate expert who can adapt to the changes of the market and guide you toward real estate success. The LaMon Team is proud to be your market experts, and we would be happy to set you on the path to real estate success in 2025.

Call, text, or email us today to get started!