November 2023 Intown Atlanta Market Report
Bill Adams, Founder, Adams Realtors & Adams Commercial Real Estate
Welcome to our November 2023 Intown Market Report. This month the Average Sales Price for the Intown Market is $726,355, a 6% year over year increase and a slight ($876) decrease from last month’s average. The Number of Days on the Market increased to 39 days while the Number of Units Sold fell to only 1,511, a 30% decrease over the last year. This month the market continued the trend of increasing prices and days on the market along with fewer transactions. Higher interest rates and limited inventory are the primary causes for the drop in the number of transactions. On the other hand, the lack of inventory is causing demand and supply to continue to be out of balance with the result that prices in most markets continue to rise.
As of mid-November, the national average for the 30-year, fixed rate mortgage is 7.75%, an almost 4.5% increase in interest since January 2022. It is no wonder many prospective buyers are on the sidelines. For some of these buyers, the higher rates keep them from qualifying for a loan. For those that can qualify, one strategy I suggest is that they consider buying now and refinancing their home mortgage when the rates fall in the next year or so. To explore the pros and cons of this strategy, I recommend that a prospective purchaser discuss this possibility with a lender. Some lenders may offer low or no cost refinancing as an option. One reason to consider a purchase now instead of waiting for lower interest rates is that in many Intown Atlanta markets home prices continue to increase. In certain neighborhoods purchasing a home in 2024 may be 5% to 10% more expensive than buying that property this year. Thus, any savings due to a lower interest rate could be more than offset by a higher house price.
My advice to a prospective home buyer is to look at a home as shelter and not as an investment. That being said no one wants to lose money when purchasing a home. Our Intown market report can be a helpful resource when considering where to purchase a home. Keeping in mind that past performance is not a guarantee of future results, the following communities appreciated on a percentage basis by high single digits or double digits over the last year:
In the $400,000 to $500,000 price range- West End 24% and Capitol View 17%
In the $500,000 to $600,000 price range- Adair Park 24%
In the $600,000 to $800,000 price range- Summerhill 16%, Reynoldstown 15%, Edgewood 15% and Avondale Estates 11%
In the $800,000 to $900,000 price range- The City of Decatur 9%
In the $900,000 to $1 million price range- Candler Park 9%, Winnona Park 9%, and Old Fourth Ward 24%
In the $1 million plus price range- Glenwood Park 12%, Inman Park 22%, and Midtown 13%
There are plenty of other factors to consider when purchasing a home besides price appreciation. Some of those factors might include the style and quality of a neighborhood’s housing stock. Proximity to retail and employment centers. Nearby passive and active recreation opportunities. Good schools and public transportation. I hope this commentary, along with our Intown Market Report will provide you with good guidance as you consider your residential real estate options. Our residential agents are experts in Atlanta’s Intown markets and please feel free to contact me or one of our folks at (404) 688-1222 with any questions that you may have.
