REAL ESTATE MARKET OVERVIEW 2023 RECAP • 2024 OUTLOOK
MESSAGE FROM THE PRESIDENT AND CEO “As we step into 2024, the real estate landscape in Atlanta and its surrounding communities is filled with boundless opportunities. With unwavering optimism, we embrace the challenges, knowing that each hurdle is a stepping stone to greater success. Together, we will continue to build dreams, forge connections, and create a thriving future in the vibrant heart of the Southern real estate market." DeAnn Golden President and CEO
2023 MARKET RECAP
Real Estate Market Overview: 2023 Recap The 2023 real estate market offered a fascinating tapestry of resilience, moderation, and shifting trends. While the national market cooled, Georgia maintained stable growth and robust demand, solidifying its reputation as a dynamic and desirable location. Here's a closer look at the key dynamics of the past year: Prices Modest growth: Despite rising mortgage rates, Atlanta's average sale price, of $470,000 saw marginal increases compared to 2022. Berkshire Hathaway HomeServices Georgia Properties outpaced the market by 4.7% with an average sale price of $549,000 a 4.9% increase over 2022. This suggests continued seller confidence and a potentially competitive market despite slower sales velocity. Supply and Demand Steady demand: Home sales remained consistent through the year. Inventory remains tight: Though showing slight improvement, the gap between buyer demand and available housing persists, contributing to a competitive market for sellers. Days on market: Homes spent an average of 41 days on the market, compared to 34 days in 2022, indicating a slower but still healthy pace of sales.
AVERGAGE SOLD PRICE COMPARISON
600,000
500,000
400,000
BHHS GA AVERAGE SOLD PRICE
300,000
MARKET AVERAGE SOLD PRICE
200,000
100,000
0
2018
2019
2020
2021
2022
2023
Trends Shift towards affordability: Rising interest rates and housing costs may have dampened buyer enthusiasm for luxury homes, potentially fueling interest in more affordable options and suburbs. Single-family homes reign supreme: The demand for spacious homes with dedicated workspaces, driven by remote work trends, remained strong throughout 2023. Metro Atlanta and its surrounding communities have become a magnet for diverse lifestyle demographics, offering an irresistible draw for residents and newcomers alike. Additionally, affordability, a variety of housing options, and access to outdoor activities contribute to its attractiveness, making Georgia a compelling choice for those seeking a well-rounded and fulfilling way of life. 2023 proved to be a year of adaptation for the Metro Atlanta real estate market. While the pace of growth slowed compared to the frenzied days of the pandemic, the city maintained its appeal and sustained a healthy level of activity.
Real estate is a huge economic driver for the state of Georgia, accounting for $137.6 billion of gross state product in 2022. (more than 18%) National Association of Realtors®
2024 OUTLOOK
Anticipating the Future The year 2024 is expected to bring stability to the real estate market, with moderate price growth and consistent demand. While major cities like Atlanta and Athens are predicted to be busy centers, the mountain, lake and southern crescent areas are predicted to contribute to the regional real estate landscape. Each offering a unique charm and potential for development.
Most experts anticipate a gradual decrease in rates throughout 2024. Lower rates could translate to lower borrowing costs for mortgages, auto loans, and credit cards, potentially improving housing affordability and reigniting buyer demand.
Ongoing population expansion and strong job markets in Georgia could generate additional demand for housing. Nonetheless, national economic trends and interest rates are expected to influence local market dynamics. The search for affordable housing options within the metropolitan area is likely to persist, shaping buyer behavior and development patterns. The Federal Reserve has signaled its intention to cut interest rates in 2024 if inflation falls as expected. Slowing economic growth and potential recession worries could prompt the Fed to cut rates even faster to stimulate the economy. The actual pace and degree of interest rate declines remain uncertain. Consult with financial advisors and professionals before making borrowing decisions based on interest rate forecasts.
Mortgage Rates Decrease to Lowest Level Since May of 2023 January 18, 2024 Between late October and midDecember, the 30-year fixed-rate mortgage plummeted more than one percentage point. Since then rates have decreased, reaching their lowest level since May of 2023. This is an encouraging development for the housing market and in particular first-time homebuyers who are sensitive to changes in housing affordability. However, as purchase demand continues to thaw, it will put more pressure on already depleted inventory for sale. Prosperity Home Mortgage is committed to providing tailored solutions that empower your client to conquer the anticipated buyer activity in 2024. Connect with your partner for current rates and programs.
Opinions, estimates, forecasts, and other views contained in this document are those of Freddie Mac’s economists and other researchers, do not necessarily represent the views of Freddie Mac or its management, and should not be construed as indicating Freddie Mac’s business prospects or expected results. Although the authors attempt to provide reliable, useful information, they do not guarantee that the information or other content in this document is accurate, current or suitable for any particular purpose. All content is subject to change without notice. All content is provided on an “as is” basis, with no warranties of any kind whatsoever. Information from this document may be used with proper attribution. Alteration of this document or its content is strictly prohibited. ©2024 by Freddie Mac.
2023 YEAR IN REVIEW
BERKSHIRE HATHAWAY HOMESERVICES GEORGIA PROPERTIES 2023 ACHIEVEMENTS Highlighting a year of growth, dynamic market trends, and record-breaking achievements.
2023
SALES VOLUME $4.08
BILLION IN SALES
2023
UNITS SOLD 7,500
AVERAGE SALES PRICE
UNITS SOLD
549k 494k
500,000
437k
400,000
331k
353k
379k
300,000 200,000 100,000
0
2018
2019
2020
2021
2022
2023
©2024 BHH Affiliates, LLC. An independently operated subsidiary of HomeServices of America, Inc., a Berkshire Hathaway affiliate, and a franchisee of BHH Affiliates, LLC. Berkshire Hathaway HomeServices and the Berkshire Hathaway HomeServices symbol are registered service marks of Columbia Insurance Company, a Berkshire Hathaway affiliate. Equal Housing Opportunity.