It's deja vu all over again. The North Metro Atlanta August 2016 Home Sales Report indicated a dip in month-to-month sales while prices went up. Demand for houses cut into inventory on hand.
North Metro Atlanta August 2016 Home Sales
The First Multiple Listing Service (FMLS) reported that 4294 single-family detached homes were sold in North Metro Atlanta during August 2016. While that was a slight 1.2% dip from the previous month, it was 9.5% higher than August 2015. This helped boost the year-to-date totals even more. Currently, they outpace last year by 7.3%.
Prices continue their ascent. The average sale price for a North Metro Atlanta home sold in August 2016 was $339,140. This showed a 1.5% bump from the previous month but a 14% increase from last year. The average days a North Metro Atlanta home was on the market before going to contract went down from 45 last year to 42 last month.
North Metro Atlanta Inventory Levels
Demand has taken a toll on inventory levels. When referencing "inventory levels", it means the amount of time it would take to sell whatever homes are currently available without anything new coming on the market. Six months of inventory is considered a "balanced" number. Anything lower tilts in the Seller's favor. Anything higher favors the Buyer.
As of August 2016, single-family North Metro Atlanta detached homes had 6.5 months of newly constructed homes on hand. This indicated a one month reduction from the same time last year. Existing homes shrunk from four months in August 2015 to 3.3 months in August 2016.
Effects of North Metro Atlanta August 2016 Home Sales on Buyers
Total sales may have gone down, but prices continue to increase. Interest rates for a 30 year fixed rate mortgage continue their sub-4% levels. However, they rose slightly just last week. The Federal Reserve meets over the next couple of days. I hear rumblings that there is a good chance they may increase rates. We won't know for sure until later this week. Contact your North Metro Atlanta REALTOR® when you are ready to look for your new home.