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2024 Real Estate Market Guide and Forecast in Atlanta, Georgia

atlanta housing market 2024 - home sold by HOME Real Estate in Atlanta

Sold by HOME Real Estate in Atlanta, GA

Atlanta’s housing market in 2024 promises growth and opportunity, driven by a robust economy and cultural vibrancy. The city’s economic indicators and promising investment returns set the stage for a thriving real estate environment. Coupled with a burgeoning population and above-average educational systems, Atlanta offers a blend of growth potential and quality of life that is hard to overlook.

The diverse neighborhoods and vibrant cultural scene further enhance its appeal, making it a magnet for those seeking lucrative real estate opportunities. From luxury homes to burgeoning commercial spaces, Atlanta’s market diversity caters to a wide range of preferences and investment strategies.

This guide delves into the nuances of the city’s real estate landscape and offers a comprehensive overview and insightful forecasts for 2024. It aims to equip readers with the knowledge to make well-informed decisions. Continue reading to discover how to optimize your real estate endeavors in Atlanta’s dynamic market.

CURRENT STATE OF ATLANTA, GEORGIA’S REAL ESTATE MARKET

luxury home sold in Atlanta, GA

SOLD in Atlanta, GA for $4.4 million in 2023: A 5-bed, 7.5-bath, 10,200-square-foot home

Atlanta ‘s real estate landscape – marked by a diverse array of properties from modern condos to sprawling estates – was nationally recognized for its affordability and growth. Ahead of its sterling performance last year, the National Association of Realtors recognized it as the leading market to keep an eye on in 2023, distinguishing itself among 179 metro areas analyzed.

Other factors that boosted the real estate appeal of Atlanta in 2023 were:

  • A significant percentage of renters were able to afford homes, bolstered by a job market driven by tech giants establishing local offices, like Google leasing 50,000 square feet of office space in 2023.
  • An influx of new residents and a balanced market dynamic, evidenced by the close alignment of sold prices with list prices.

These factors collectively contributed to making Atlanta a prime location for real estate

investment, offering a balance of economic opportunity, lifestyle amenities, and a growing, diverse population.

Median Home Prices and Recent Sales

In January 2024, Atlanta’s housing market saw a slight decline, with home prices dropping 1.1% from the previous year to a median of $360,000, according to Redfin. Homes took an average of 54 days to sell, slightly quicker than the 56 days observed last year.

For buyers, the slight decrease in median home prices and a reduced average market time indicate a potentially favorable market. This situation may offer more negotiating power and a wider selection of properties.

Sellers facing a 1.1% dip in home prices and a slight decrease in sales volume might need to adjust strategies for pricing and marketing to align with current market conditions and attract serious buyers.

6 FACTORS INFLUENCING ATLANTA’S CURRENT MARKET CONDITIONS

Atlanta distinguishes itself as an attractive destination for real estate investment through several key factors, as follows:

  1. Population Dynamics

    Atlanta’s population, now at 512,047, witnessed a 2.44% increase since the 2020 Census. This upward trend reflects a vibrant, expanding community, making it a prime market for real estate ventures as explained by the World Population Review.

    Factors that also need to be considered:

    • Atlanta is the county seat of Fulton County but it also sprawls across Cobb and DeKalb Counties.
    • The city’s growth rate stands at 1.28% annually.
    • The average household income in the city is $128,965, with a poverty rate of 17.73%.
    • Atlanta is Georgia’s capital, the most populous city, and the 10th largest economy in the US with a GDP of $276 billion.
  2. Investment Inflows and Employment

    The city’s job market expanded by 0.303% from 2020 to 2021, with significant employment in the professional, scientific & technical services, education, and health care sectors. This economic vitality positions Atlanta as a thriving hub for professionals, according to the Data USA.

    Georgia received a record-breaking economic growth for the third consecutive year in FY23, with over $24 billion invested in new and expanding facilities, according to Governor Brian P. Kemp. This investment led to the creation of 38,400 jobs across 426 projects, marking a significant increase in job creation and a 131% rise in investment over three years, underscoring Georgia’s robust economic environment and its positive impact on Atlanta’s real estate market conditions.

  3. Lifestyle and Culture

    Atlanta is a beacon of cultural diversity and recreational opportunities, offering a lifestyle that blends urban sophistication with legendary Southern charm. This city’s dynamic cultural scene is showcased in a wide array of spaces such as museums, theaters, and music venues that cater to manifold tastes and interests.

    • A city of cultural landmarks
      Atlanta’s High Museum of Art and Fox Theatre continue to offer an impressive collection of 19th and 20th century art and legendary live performances since 1926 and 1929, respectively. The city’s history is prominently featured at the Martin Luther King Jr. National Historic Site and the Atlanta History Center, providing insight into America’s past and the civil rights movement.

    • Recreational opportunities abound
      The Atlanta BeltLine and Piedmont Park exemplify the city’s dedication to green spaces, offering trails, parks, and facilities for outdoor activities and festivals. These spaces are central to Atlanta’s community life, promoting an active and engaged urban lifestyle.

    • Sophisticated eats plus Southern cuisine
      Atlanta’s dining scene reflects its cosmopolitan flair, with a mix of sophisticated restaurants and traditional Southern cuisine. Complemented by a lively craft brewery scene and vibrant nightlife, the city caters to diverse tastes and preferences, all while maintaining its characteristic Southern hospitality.

  4. Interest Rates

    According to MoneyGeek, Georgia’s homeownership rate was 64.7%, close to the national average of 65.9%. Mortgage rates also closely align with the national average, with Georgia offering 6.78% on average for a 30-year, fixed-rate mortgage. Check out today’s interest rates in Georgia for home buying and real estate investment opportunities.

  5. Infrastructure Development

    In 2022, Atlanta voters approved a $750 million infrastructure investmentpackage focusing on transportation, public safety, and arts and recreation projects. The project, which will run until 2027, will potentially impact the real estate market by improving accessibility and quality of life.

    The funds are allocated as follows:

    • $350 million for streets, sidewalks, and bridges
    • $190 million for parks, transport & trails, and the arts
    • $210 million for buildings, building renovations, parks & recreation, and the arts
  6. Inflation

    While Atlanta is being celebrated as one the top US cities for growth, it’s crucial to consider the city’s inflation numbers, especially when evaluating its real estate market. This balance of economic prosperity and inflationary pressures shapes the overall investment landscape in Atlanta.

    • Atlanta ranks fifth in the US for inflation increases.
    • WalletHub reports a 1.1% rise in the last two months and a 4.4% annual increase.
    • Key inflation drivers include food, beverages, and transport.
    • December 2023 saw a notable inflation rate uptick, especially in transport and services sectors, according to Trading Economics.

    The inflation trends in Atlanta, particularly the uptick in sectors like transport and services, could impact the real estate market by potentially increasing the cost of living and property values.

    An evolving economic landscape invites residents and investors to adapt, highlighting the importance of staying informed through comprehensive analyses.

WHAT SHAPED ATLANTA’S REAL ESTATE MARKET IN 2023

It’s important to identify the key trends that shaped Atlanta, Georgia’s real estate market in 2023 to gauge its continuing impact today. This understanding enables anyone looking to navigate Atlanta’s housing market to proceed with caution and most importantly, with confidence.

What buyers looked for: Shifting preferences and behaviors

  1. Sustainability and energy efficiency
    The increasing demand for homes equipped with energy-efficient features and sustainable technologies was notable. More environmentally conscious buyers in Atlanta sought properties with solar panels, energy-efficient appliances, and sustainable building materials.

  2. Smart home features
    Interest in smart home technology continued to grow. Buyers looked for homes with integrated technologies that enhanced security, convenience, and energy efficiency, such as smart thermostats, security cameras, and automated home systems.

  3. Affordability and economic considerations
    According to the Atlanta Regional Commission, the Atlanta area saw the biggest percentage rise in rent costs across the country in the last five years, with a 43% increase. Today, the average rent each month is $1,747. Although this is still less than what you’d pay in New York, Los Angeles, or San Francisco, the difference in rent prices between these cities and Atlanta is getting smaller.

  4. Urban vs. suburban living
    In 2022, there was a noticeable shift in preferences with buyers more interested in small towns and countryside locations, as reported by the National Association of Realtors. Although this interest remained higher than usual in 2023, there was a noticeable pivot towards suburban regions again. This shift can be attributed to various reasons, including company leaders wanting their employees to return to the office, individuals eager to secure low mortgage rates and thus considered living farther from urban centers, and the increased purchasing power of buyers, which enabled them to buy homes closer to metropolitan areas.

  5. Community and lifestyle amenities
    Buyers are increasingly valuing communities that offer lifestyle amenities such as walking trails, community pools, and proximity to shopping and dining. The emphasis on quality of life and community engagement shaped buying decisions in 2023.

  6. Flexibility and adaptability
    The market in 2023 showed a preference for homes that adapted to changing needs, such as flexible spaces that can serve as a home office, gym, or entertainment area.

To stay ahead in Atlanta’s real estate market, buyers and sellers adapted to these trends, balancing economic realities with new opportunities for investment and homeownership.

Impact of Remote Work on Housing Demands

The widespread adoption of remote work has fundamentally altered housing demands in Atlanta. With people working from home, there was a growing preference for properties located outside the traditional city center, leading to increased interest in suburban and exurban areas. These locations offered more spacious homes and natural surroundings, catering to the desire for a comfortable and conducive remote working environment.

However, according to a recent study by the Research from the Federal Reserve

Bank of San Francisco, the shift to remote work during the pandemic also boosted housing prices significantly, contributing to 15 percentage points of the increase since November 2019. These statistics suggest that as long as a substantial number of people remain committed to remote work, it will continue to impact future real estate prices and inflation.

Influence of Interest Rates and Mortgage Policies

In today’s dynamic financial climate, understanding mortgage rates in Atlanta is crucial for prospective homeowners and those considering refinancing. These rates, as reported by Nerd Wallet, are pivotal in shaping your mortgage strategy, reflecting broader economic conditions and personal financial planning.

  • 30-year fixed-rate mortgage: The cornerstone of home financing, offering stability and predictability, with an average annual percentage rate or APR of approximately 6.95%.
  • 15-year fixed-rate mortgage: Ideal for those looking to own their home sooner and save on interest, with an average APR around 6.12%.
  • 5-year Adjustable Rate Mortgage (ARM): Offers lower initial rates for those open to future adjustments, with an average APR near 7.69%.

Armed with the latest insights on mortgage rates, homebuyers will be better positioned to navigate the complexities of buying or refinancing a home.

PREDICTIONS FOR ATLANTA HOUSING MARKET 2024

home with pool sold by HOME Real Estate in Atlanta, GA

Sold by HOME Real Estate in Atlanta, GA

For potential homebuyers, sellers, and investors, the Atlanta housing market in 2024 reflects a blend of opportunity and complexity. This guide aims to dissect this vibrant market, grounded in robust analysis and forecasts, to facilitate informed decision-making.

Emerging Real Estate Development Trends

In 2024, Atlanta’s real estate market is expected to experience the following:

  • Average home values in the metro area are forecasted to see hikes of as much as 6%, mirroring national trends.
  • However, some neighborhoods may see price drops, highlighting the importance of local market conditions, according to Atlantafi.
  • Despite some overpriced markets in the southeast, Atlanta remains a significant market for both individual homeowners and corporate investors.
  • The city’s robust job market and population growth continue to drive demand for housing.

Commercial real estate is also seeing notable developments, with a range of projects across different neighborhoods indicating a vibrant and diverse investment landscape:

  • High-profile apartment constructions are in the works.
  • Major infrastructure projects like the Atlanta Beltline show the city’s urban fabric is continuously evolving, as reported by Urbanize Atlanta.

These trends suggest that Atlanta is moving towards a more balanced market, providing opportunities for both buyers and sellers.

While the housing market remains strong, prospective buyers should stay informed about local market conditions and be prepared for negotiation. Investors, particularly those in the rental market, can find lucrative opportunities given the city’s population growth and economic dynamism.

FACTORS TO CONSIDER WHEN NAVIGATING ATLANTA’S REAL ESTATE MARKET IN 2024

Market Dynamics

  • Economic growth. Atlanta’s GDP is expected to continue its upward trend, contributing to job creation and housing demand.
  • Demographic trends. The current population in Atlanta increased by 1.42% compared to 2023, according to Atlanta Metro Population, and is expected to grow further and fuel the housing market.
  • Tech growth. With Atlanta’s tech sector booming, there’s a surge in demand for homes with office spaces.

Property Values and Sales

  • Home price appreciation. Home prices are predicted to increase by 3% to 4%, reflecting a balanced market, according to NAR Chief Economist Lawrence Yun.
  • Sales volume. A 13.5% rise in sales volume is anticipated, driven by the city’s economic resilience and demographic factors.

External Factors

  • Interest rates. Expected fluctuations could impact buyer affordability and investment returns.
  • Policy changes. Local government policies on zoning and housing could influence market trends and investment opportunities.

Investment Opportunities

  • Rental market. With a steady influx of residents, the demand for rental properties, especially in tech hubs, is set to rise.
  • Luxury market. Luxury real estate in Atlanta, GA, is witnessing heightened interest, with a 10% increase in luxury home sales projected, as reported by Atlanta Agent Magazine.

Market Challenges

  • Inventory constraints. Limited housing inventory might lead to competitive bidding, particularly in popular neighborhoods.
  • Affordability issues. As prices rise, affordability could become a challenge for first-time homebuyers.

Key Insights for Stakeholders

  • For buyers. The current market conditions offer a mix of challenges and opportunities. Buyers should focus on emerging neighborhoods and consider long-term value.
  • For sellers. With property values on the rise, sellers have a favorable market. However, pricing strategies should reflect the balanced market conditions to attract serious buyers.
  • For investors. The rental market remains robust, offering lucrative opportunities in luxury housing and areas dominated by tech companies.

The Atlanta housing market in 2024 promises to be vibrant, featuring luxury homes for sale within the city and the broader real estate market presenting promising opportunities.

To navigate the market effectively, buyers, investors, and sellers are encouraged to consider these insights, which are based on data and forecasts. Through strategic planning and comprehending market dynamics, real estate stakeholders can attain their objectives in this flourishing market in 2024.

THRIVE IN ATLANTA’S REAL ESTATE SCENE IN 2024 BY WORKING WITH HOME LUXURY REAL ESTATE

Unparalleled opportunities await those who are exploring the Atlanta real estate landscape whether you’re aiming to acquire, divest, or invest. With a clear vision of the Atlanta housing market’s prospects in 2024, your time to act is now. Partner with HOME Luxury Real Estate to help you achieve your real estate goals.

HOME Luxury Real Estate is at the forefront of elevating the luxury real estate experience in Atlanta with a personalized, client-first approach. Our elite cadre of agents, distinguished by their collective $4.5 billion in home sales, embodies the pinnacle of market expertise and dedication.

We are focused on empowering our agents, ensuring they have the resources and support to be the best in the industry. This commitment translates to superior service for our clients, making every transaction with HOME Luxury Real Estate not just a process, but a journey with trusted guides.

Embark on your 2024 real estate journey with HOME Luxury Real Estate. Contact us at 404.538.1491 or via email for a consultation that promises not just satisfaction, but delight. Let us be your partner in success.

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