Atlanta’s Mid-Year Real Estate Market Update

The Atlanta real estate market is always on the move! Even with today’s interest rates, there's plenty to be optimistic about. From shifting sales trends to new demographics, understanding the current real estate trends can help buyers and sellers make better decisions. 

Let’s take a look at what we’ve seen so far in 2024, and what to expect moving forward:

Sales Volume

It’s time to face the facts: the real estate sales volume has decreased from an average of $3.4 million to $2.5 million over the last year. (That’s 27%!) This downturn marks the worst market conditions in terms of sales volume since the 1990s. 

However, there is a silver lining to this year’s market. Real Estate experts like Brian Buffini are predicting a late-year surge in sales and expect 40% of 2024’s sales volume to occur in the final months of the year. This anticipated surge indicates a robust finish to the year, offering exciting opportunities for both buyers and sellers.

Interest Rates & Inflation

Inflation has accumulated to 20% over the past four years, but the market is beginning to show some resilience. Buyers are learning to adapt to the market and continue to enter the market despite less-than-savory interest rates.

As for interest rate predictions, experts from Fannie Mae, the Mortgage Bankers Association, and the National Association of Realtors (NAR) predict that interest rates will end the year around 6.67%, with a slight decrease to 6.25% in 2025. Additionally, a single rate cut is anticipated between September and November, which could provide some relief to potential buyers.

Waiting to time your next move when rates drop? We have a slightly unpopular opinion on this topic. Watch the video below for our take.

Supply & Demand

First, let’s talk supply. Inventory levels are on the rise, with 57% more homes available on the market in Atlanta compared to this time last year. This increase in inventory provides more options for buyers, making it an excellent time to explore the market and find the perfect home.

Demand remains exceptionally high, driven by the ongoing housing shortage and rising rent prices. Persistent rent hikes continue to put pressure on current renters, with 22 million claiming their rent is 30% of their income—and 12 million claiming it’s 50% of their income.

With rental rates up 30% from 2020, many people will continue to explore buying a home as it becomes less and less affordable to rent. For buyers, it’s important to consult with a real estate professional to help with quick decision-making and a proactive approach to securing your dream home.

Market Demographics

The market demographics are shifting in an exciting way. In 2024, 31% of the buyer market consisted of first-time home buyers. Many people are getting assistance with their mortgage payments from family members, making homeownership much more attainable.

It’s also important to account for the 45.5 million millennials who are in the “household formation” age. More family-oriented millennials are beginning to shape the market, and this wave of young buyers is creating a vibrant and dynamic future for real estate.

NAR Update

At The LaMon Team, we understand many of our clients are curious about how the NAR settlement will affect the upcoming housing market. So, let’s shed a little light on the situation.

What can buyers expect when it comes to agent compensation?

First things first, buyer agent commission has always been negotiable. That is something that has not changed, but where this conversation takes place is now up for debate. Buyer agent commission was typically stated on the MLS—and while listing advertisement will still play a large part on the MLS, buyer agents are now expected to take these conversations offline.

This shift is an opportunity to enhance trust between real estate professionals and their clients. Agents are now encouraged to clearly present their value proposition, differentiate their professional skills, and ensure that compensation discussions are part of their client interactions. This emphasis on communication and trust-building sets the stage for stronger, more collaborative relationships in the industry.

For more information, you can visit NAR FAQs.

Even with today’s real estate challenges, buyers and sellers are still presented with great opportunities to achieve their real estate dreams. The market may be shifting, but with the right knowledge and approach, we believe our clients have the tools they need for a successful transaction.

For any questions about the current housing market, don't hesitate to reach out to The LaMon Team. We're experts in the Atlanta area and are passionate about sharing our knowledge with the Atlanta community.