My North Metro Atlanta Market Report 2017 Year in Review showed that prices rose to their highest point in the last six years. Meanwhile, after five years of increasing total sales, they dipped slightly in 2017. Inventory has been getting used up, with available existing homes for sale less than half they were in 2016. Read on to find out more.
North Metro Atlanta Home Sales - 2017 Year in Review
According to the First Multiple Listing Service (FMLS), a total of 46,023 single-family detached homes were sold in the North Metro Atlanta area throughout 2017. This marked a 0.7% decline from last year's totals. Up until this slight decrease, sales had been marching steadily upwards every single year. Things started slowly in January, with just 2442 sold for the month. They increased through March, dropped in April, then picked back up in the busy spring season. 2017 sales peaked at 4941 in June. In the fall, they began to decrease. However, that is normal for the North Metro Atlanta real estate market. Finally, we ended the year with a total of 3497 homes sold in December.
North Metro Atlanta Home Prices - 2017 Year in Review
The average sale price for North Metro Atlanta homes has steadily increased over the last six years. For the year, prices averaged out to $337,618, a 6.3% increase from last year's average of $317,691. We started out the year with an average sale price of $317,967. Prices rose each month until they reached their peak of $350,590 in July. From there, they began to go down. After a quick bump upwards in November, we ended the year at $334,018.
North Metro Atlanta Inventory - 2017 Year in Review
Inventory levels in the North Metro Atlanta real estate market are on the decline. We started off the year with 8.1 months of available new construction and 3.1 months of existing inventory. New construction levels hit a zenith of 9.1 months in March. In June, they fell to 5.9 months (their lowest level for the year). By December, 6.8 months of new construction inventory was shown on hand (13.9% less than December 2016). In parts of Rockdale, it was as high as 15 months. Areas of Dekalb, on the other hand, reported just two months available. Existing construction was even lower. 2017 started with 3.1 months of available inventory reported. It rose to 3.4 months in March (the highest for the year) and then began to descend. By December, reports showed an average of 1.4 months available throughout North Metro Atlanta (a 54.8% drop). In parts of Fulton and Cobb, they showed four months available. Meanwhile, other sections of Fulton, Cobb, Cherokee, Dekalb, and Gwinnett report as little as one month available.
What North Metro Atlanta Buyers Might Expect in 2018
With the new tax bill signed into law in late December 2017, a $750,000 mortgage cap was placed on the mortgage interest deduction. This shouldn't affect most of the North Metro Atlanta homeowners since the average sale price in December was $334,018. However, if you have a home equity line of credit, it is no longer eligible for deduction on your taxes. A growing economy has prompted the Federal Reserve to begin increasing interest rates. Some financial experts say we can expect to see a couple more increased over the next 12 months. We may hit 5% by the end of the year. The sooner you start looking for your next North Metro Atlanta home, the better. When you're ready, contact me. I'd love to help you out.