Q2 Mid-Year Review

The close of Q2 2023 marks a full year since interest rates increased beyond 5.25%. Rising mortgage rates and historically low inventory levels are the two primary factors that continue to shape the landscape of the real estate market in Metro Atlanta. Consumers and would-be sellers keep a trained eye on mortgage rates and inventory levels to make the best predictions and decisions regarding the timing to buy or sell a home. The waning prospect of lower interest rates in the near future coupled with a more urgent need for a home has pushed many “patient” homebuyers off the sidelines, leading to a more robust Q2 2023.

As a whole, the second quarter closed with positive numbers and stability. There were 15,773 closed sales in Q2 2023, which is 26% more than the 11,709 in Q1 2023. The average sale price increased by 11% from $463,918 to $515,579, months of inventory increased slightly from 1.8 months to 2.0 months, and the average days on the market decreased by 32% from 44 to 30. Month-over-month (MOM) in April, May, and June, new listings increased marginally while closed and pending sales saw small gains and losses, leading to overall stability for Q2 2023 and gains over Q1 2023.

Comparing current quarter data to our benchmark year of 2019, we find that there is a distinct correlation between the number of new listings, pending sales, and closed sales. While there were 28% fewer closed sales and 31% fewer pending sales in Q2 2023 vs Q2 2019, there were 34% fewer new listings. The fact remains that while inventory levels and new listings remain suppressed, pending and closed sales will continue to decline.

By the end of June, interest rates returned to 6.97%, and forecasts by Freddie Mac, Fannie Mae, the Mortgage Bankers Association, and the National Association of REALTORS have become more conservative with an increase in the average Q4 2023 30-year fixed rate from 5.7% to 6.1%. Would-be home sellers who would prefer to make a move remain reluctant to give up their historically low interest rate, while homebuyers who must make a move have begun to adjust to the new normal of current mortgage rates and are making decisions to purchase. Homes that are priced appropriately and meet or exceed market expectations are quickly being consumed by homebuyers looking for the right opportunity. Consequently, inventory levels remain low or decline MOM, and we remain in a seller’s market.

The rest of this report provides a snapshot of key metrics by home type (single-family homes, townhomes, and condominiums) and submarket, including neighborhoods Inside the Perimeter (ITP) and Outside the Perimeter (OTP).

Q2 2023 at a Glance

• 15,773 Homes Sold
• $515,579 Average Sale Price
• 2.0 Months of inventory
• 30 Average Days on Market

Individuals – New Listings Taken by Volume

1. Edward Sanford
2. Lucy Small
3. Debi Bruggmeier

Individuals– New Listings Taken by Units

1. Edward Sanford
2. Debi Bruggmeier | Lucy Small | Michael Kochie (tie)

Individuals– Closed Sales Volume

1. Michael Kochie
2. Debi Bruggmeier
3. Edward Sanford

Individuals–Closed Sales Units

1. Michael Kochie
2. Debi Bruggmeier | Edward Sanford (tie)

Teams – New Listings Taken by Volume

1. LH Real Estate Group
2. Alicia Edwards Team
3. Holly Nelson Team

Teams– New Listings Taken by Units

1. LH Real Estate Group
2. Holly Nelson Team
3. Alicia Edwards Team

Teams– Closed Sales Volume

1. LH Real Estate Group
2. Alicia Edwards Team
3. Holly Nelson Team

Teams–Closed Sales Units

1. LH Real Estate Group
2. Alicia Edwards Team
3. Holly Nelson Team

To learn more about homes selling in your neighborhood or your dream location, reach out to your Engel & Völkers Advisor or visit evmountains.com for more detailed information about trends in your area.