It looks like things in the North Metro Atlanta marketplace really took off last month. The July 2019 North Metro Atlanta Market Report showed that sales soared and prices rose (but just a little). While existing home inventory remained exactly the same as last July, new construction fell off slightly.
July 2019 North Metro Atlanta Market Report
North Metro Atlanta Market Report - July 2019 Sales
The First Multiple Listing Service (FMLS) reported a total of 4844 single-family detached homes were sold in the North Metro Atlanta real estate market during July 2019. That's 5.1% more than the 4609 sold during the same time period last year. It's also 10.1% higher than June 2019's total sales. That also makes it the second-highest monthly sales for 2019, behind May's 4953. The average days a home stayed on the market before finding a buyer rose slightly from 35 in July 2018 to 39 last month.
North Metro Atlanta Market Report - July 2019 Prices
Prices continued their upward trend in July. They increased by 3.3% from last year to $389,921. Some Fulton County buyers still average more than $1 million for their homes ($1,056,040 on average to be precise). The list price to sale price ratio also went up. Last July, buyers paid 94.5% of the list price for the final sale price on average. Last month, that increased to 98.1%. However, some buyers in parts of Gwinnett and Cobb County paid 99% or more.
North Metro Atlanta Market Report - July 2019 Inventory
After seeing a slight year-over-year increase in June, inventory levels fell back a bit in July. New construction inventory saw a little bit of a reduction (from 7.2 months in 2018 to 6.9 months in 2019). Some areas of Cherokee, Cobb, and Rockdale Counties showed less than one month of inventory available. Meanwhile, parts of Gwinett County showed 38 months on hand. Already existing homes stayed exactly the same as last year, with 2.8 months available. Some parts of Cobb County reported just one month on hand while areas in Fulton County showed six months available.
What Does This Mean for Buyers?
For several months, the Federal Reserve interest rate has remained in a holding pattern of 2.5%. However, at the end of July, they lowered it to 2.25%. That's the first time since December 2015 that it has actually gone down. When they reported their decision to lower it, they suggested that rates may go down yet again by the end of this year. Oftentimes (but not always), mortgage interest rates follow suit. After tipping just over 4% in mid-July, the average interest rate paid for a 30-year fixed-rate loan held steady at 3.81% earlier this week, according to Bankrate.com. Will the Federal Funds Rate reduction mean a further decrease in mortgage rates? Possibly. We'll have to wait and see. The truth is, if you get your credit in the best shape possible, you'll be able to get the best rates possible on your mortgage loan. So, if you plan on purchasing a new North Metro Atlanta property in the next few months, concentrate on putting money away for your down payment and closing costs. Then, start cleaning up your credit and paying down debt to help beef up your score. When you're ready to start looking at properties, contact your North Metro Atlanta REALTOR®.