I hope everyone had a very Merry Christmas and a decidedly Happy New Year. We are already in the middle of January. Let's take a look back at the real estate market with my North Metro Atlanta Home Sales 2016 Year in Review.
North Metro Atlanta Home Sales 2016 Year in Review
According to the First Multiple Listing Service (FMLS), 46,343 North Metro Atlanta single-family detached homes were sold last year. That was the highest total for the last five years. It surpassed 2015's total sales by 8%. The days a North Metro home spent on the market in 2016 was 47.9, 11.8% less than in 2015. Inventory levels, on the other hand, increased. New construction inventory went up to 7.9 months from 6.5 in 2015. Existing inventory levels increased from 2.9 months in 2015 to 3.1 months in 2016.
North Metro Atlanta 2016 Average Sale Prices
The average sale price for a North Metro Atlanta home steadily increased over the last five years. Last year's average came in at $317,691. This marked a 5.1% increase from the previous year's average. The list price to sale price ratio increased as well. North Metro Atlanta Buyers paid just 92.7% of the list price on average in 2015. However, that increased to 97.5% in 2016.
What to Expect in 2017's North Metro Atlanta Market
The Federal Reserve increased the prime interest rate to 0.5%-0.75% last month. Financial experts believe we should expect three more increases by year's end. The increase in the prime interest rate typically influences mortgage rates. In fact, we have already seen them bump up to around 4.5% after the Fed's announcement last month. If you're interested in purchasing a North Metro Atlanta home, you need to do it now. If you wait, both the sale price and your interest rate could go up. Contact your North Metro Atlanta REALTOR® to get started today.