Sales of Atlanta residential real estate rebounded a bit in May as the number of homes sold in the five-county metropolitan area rose 1.3% last month compared to May 2016. The modest increase follows two other months this year (February and April) when the Atlanta market experienced declines after two years of positive year-over-year comparisons and record closings. While closings year-to-date were still on their best pace ever through May, a persistent lack of housing inventory priced less than $750,000 continued to hamper the market.
Areas of Atlanta that turned in strong closing performances in May included East Cobb County (+20.9%) and Vinings proper (+76.3%). The Atlanta “Intown” condo market (Midtown/Ansley Park/Va-High/Morningside) led decliners (-11.6%). Buckhead sales were flat in May but were up for the year after a down year in 2016.
Sales of homes priced $1 million or more increased 26.2% in May led by noteworthy jumps in Buckhead, Atlanta Intown, Brookhaven, and North Fulton. The $1 million and up market represented 2.2% of all sales in May versus 1.7% in May 2016. That was good for an increase of 29.4% in the luxury home market year-over-year.
The average sales price for single family detached homes sold in Cobb, DeKalb, Forsyth, Fulton and Gwinnett counties last month set another all-time high of $347,696, or an increase of 6% from May 2016 ($328,116). The average sales price of attached homes (condos and townhomes) rose 8.1% to $246,131. Record average sales prices have been set every month since October 2015, a span of 20 consecutive months.
At a local housing summit conducted by Atlanta-based new home consulting firm MarketNsight on June 9, the firm’s principle, John Hunt, noted that “moderation (in resale and new home prices) is the new normal because people’s incomes won’t let prices grow any higher.” Along with restrained lending practices, slow income growth has created a “hard ceiling” on the market he added.
The months’ supply of inventory in Atlanta remains a significant hindrance to keeping prices in check, however. A market considered in balance between supply and demand has a six months’ supply of inventory according to the National Association of Realtors. The months supply of inventory in May was 4.7 months. That number didn’t tell the tale of Atlanta’s two markets though. Whereas the months’ supply of homes priced less than $750,000 was 4.3, the months’ supply of homes priced more than $750,000 was 15 months.
Powered by sales in some of the aforementioned top performing areas of Atlanta, Beacham & Company set an all-time sales record in May for number of sales in a month while dollar volume of real estate sold was the second highest ever. The firm’s number of home sales exceeded May 2016 by 22.5% and dollar volume increased 18.2%. The monthly records for May also marked the third time this year the firm has set all-time records for monthly production.
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Beacham & Company, REALTORS is Atlanta’s top-selling luxury real estate office. The firm was founded in 2006 by Glennis Beacham, one of Atlanta’s most celebrated real estate agents. The firm has 100 agents who average $7 million in sales per agent.
