We've hit the busy months of real estate in the North Metro Atlanta market. According to the May 2018 North Metro Atlanta Market Report, more homes were sold last month than in any other month this year so far. Families take advantage of the summer break to move. That gives kids time to adjust to their new surroundings before starting school back up in the fall. It also means more competition for dwindling inventory.
May 2018 North Metro Atlanta Market Report
May 2018 North Metro Atlanta Market Report - Home Sales
The First Multiple Listing Service (FMLS) reported that a total of 4912 North Metro Atlanta homes were sold in May 2018. This marks a 1.9% increase from the 4819 sold in May 2017. The average days a home spent on the market dropped from 41.5 to 33. In fact, one home in Gwinnett County only spent one week on the market before entering escrow. That shows how competitive the market can be in some parts of the North Metro Atlanta area.
May 2018 North Metro Atlanta Market Report - Home Prices
Year-over-year average sale prices continue to escalate. While Buyers paid $342,382 on average in May 2017, they paid 8.2% more last month, with an average of $370,626 across the entire North Metro Atlanta real estate market. In one area of Fulton County, the average sale price came in at $1,138,445. The list price to sale price ratio (LP vs SP) dipped a slight 0.2% (from 98.4% in May 2017 to 98.2% in May 2018). Sections of Dekalb and Cobb County reported that the average LP vs SP was 100% or more. That means that Buyers paid at least asking if not more on average in those areas.
May 2018 North Metro Atlanta Market Report - Inventory
After last month's bump up, inventory levels appeared to decline again. New construction saw a very slight dip (from 6.8 months available last year to 6.7 months available last month). While some areas of Rockdale County reported as much as 24 months of availability, other areas of Fulton saw just one month). Existing homes fell from 3.1 months in 2017 to 2.7 months this year. Parts of Fulton County showed as much as six months of inventory available while sections of Cobb County only reported one month.
What Buyers Need to Know
Just last week, the Federal Reserve announced another increase to their benchmark rates. They currently stand at 1.75-2.00%. They expect to raise it two more times by the end of the year. According to Bankrate.com, the rate for a 30-year fixed-rate loan averaged 4.76%. We could see these rates hit 5% before 2019. Most of the time, mortgage rates follow the same trend as the Federal Reserve. When they announce increases, mortgage rates follow suit. Even so, these are still lower than the 6% average we saw ten years ago. And they're significantly lower than the double-digit rates the market experienced back in the mid to late 1980s.
Owning your dream North Metro Atlanta home is still possible. You just need the right person representing you. When you're ready to buy a new home, contact me.