Karen Cannon

The real estate market in the Atlanta metropolitan area is still going strong in January. The market remains competitive, with the average sales price up in Sandy Springs and an increase in homes on the market in both Dunwoody and Sandy Springs.

Key takeaways:

• • The average sales price is significantly up in Sandy Springs and slightly down in Dunwoody
  • Both Dunwoody and Sandy Springs saw an increase in average days on market
  • Months’ supply of homes in both Dunwoody and Sandy Springs increased
  • Homes for sale increased dramatically in Dunwoody and slightly in Sandy Springs

Though the number of homes increased in both locations and spent more time on market, the average sales price indicates a good market.

Average Sales Price

In Sandy Springs, the average sales price in January 2023 was $783,275, which is a 28.2% increase over 2022. In Dunwoody, the average sales price dropped slightly, from $561,522 to $501,641.

Average Days on Market

The average days on market increased in both Sandy Springs and Dunwoody. From 2022 to 2023, the days on market in Sandy Springs went from 28 to 43 – a 53.6% increase. In Dunwoody, the average days on market increased more significantly, from 17 to 45 – representing an increase of 164.7%.

 

Months’ Supply of Homes for Sale

Months supply of homes for sale is a key indicator of supply and demand in the market. Essentially, it predicts how long the current inventory will take to sell – without new listings.

Both Dunwoody and Sandy Springs had significant increases in months supply of homes from 2022 to 2023. In Dunwoody, the increase was 120% — from 0.5 to 1.1. Sandy Springs was at a 66.7% increase from 2022 to 2023 – from 0.9 to 1.5.

Homes for Sale

The housing market was volatile in recent months, but it’s beginning to stabilize with available inventory coupled with rising prices – indicating healthy demand.

In January 2022, there were 102 homes for sale in Sandy Springs and 24 homes for sale in Dunwoody. Now, Sandy Springs has 110 homes for sale – an increase of 7.8% — while Dunwoody has 42 homes for sale – an increase of 75%.

Pending Sales

Pending sales typically take between 15 and 60 days from contract to closed sale. Some homes will be a closed sale while others will return to active status or get pulled from the market. Pending sales is still a valuable metric for understanding the types of homes – and locations – that buyers are looking for.

Sandy Springs had 66 pending sales in January 2023, which is a 26.7% decrease from 90 in January 2022. Dunwoody is similar, with 24 pending sales – a decrease of 22.6% over 31 in January 2022.

Key Takeaways

Though still competitive, the Atlanta metropolitan area’s housing market is beginning to stabilize. Homes are spending more time on market, but there’s more inventory available and higher-priced homes. Despite volatility in other markets, Dunwoody and Sandy Springs remain steady.

What we’ve experienced in the housing market over the past two years were historic levels of demand and constrained supply. This fall, like in many other areas of the country, the real estate market slowed down in the Atlanta metropolitan area especially as mortgage rates have nearly doubled in the past year. In Dunwoody and Sandy Springs, the market is competitive, with moderate average sales prices, low average days on market, and an increase in homes for sale.

Key takeaways:

• The average sales price is up in Dunwoody and down in Sandy Springs
• Both Dunwoody and Sandy Springs saw a decrease in average days on market
• Months’ supply of homes in both Dunwoody and Sandy Springs increased
• Inventory was down in Dunwoody and Sandy Springs
• While the housing market saw demand taper due to mortgage rates, limited supply combined with competitive prices, made November a good time to sell.

Average Sales Price

In Dunwoody, the average sales price in November 2022 was $573,738 – a 4.1% increase over 2021. In Sandy Springs, the difference was more pronounced at $668,721 in November 2022 – a decrease of 8.7% over the average sales price in 2021.

Average Days on Market

Days on market is a key metric that shows the number of days from the date which a home is listed to the date the seller accepts a contract to sell.

Because homes generate the most interest when they’re new to the market, average days on market is an important metric for determining how competitive the market is. Homes that sell quickly indicate a high demand for the property.

In Dunwoody, the average days on market was 19 in November 2022 – a 13.6% decrease since 2021. In Sandy Springs, the average days on market was 31 in November 2022 – a decrease of 11.4% since 2021. Smaller numbers like these indicate a more competitive real estate market with limited supply and high buyer demand.

Months’ Supply of Homes for Sale

Months’ supply of homes for sale illustrates the supply and demand in a housing market. Assuming no new homes are listed for sale, months’ supply estimates how many months it would take for all the homes that are currently listed to sell.

In Dunwoody, the months’ supply of homes for sale in November 2022 was 1.5, which is a 275% increase since 2021. In Sandy Springs, the month’s supply of homes for sale in November 2022 is 1.9, a 46.2% increase since 2021.

Homes for Sale

In November 2021, the homes for sale in Dunwoody were 18, which was a 69.5% drop since 2020. The inventory is starting to improve with November 2022 showing 55 homes for sale, a 205.6% increase since 2021.

The market is similar in Sandy Springs. In November 2020, there were 302 homes for sale, which dropped to 140 in 2021 – a decrease of 53.6%. In 2022, the homes for sale increased to 152, which is 8.6% higher than 2021.

Pending Sales

Typically, it can take anywhere from 15 to 60 days for a home to close after it has gone under contract. Pending sales can indicate where buyers are shopping and what types of homes are selling – useful information for other buyers and sellers.

In Dunwoody, November 2022 showed 19 pending sales, which is a 36.7% decrease since 2021. In Sandy Springs, there were 45 pending sales in November 2022, a 53.1% decrease since 2021.

Key Takeaways

Despite surging mortgage rates that cooled buyer interest and lowered demand, it remains a seller’s market with relatively high demand, limited supply, and competitive sales prices. So, while the market has shifted, the Dunwoody and Sandy Springs markets remain strong.

At first glance, the increase in housing supply compared to last year may not sound like good news for prospective sellers, but it actually gives you two key opportunities in today’s housing market.

An article from Calculated Risk helps put the inventory gains the market has seen in 2022 into perspective by comparing it to recent years (see graph below). It shows supply has surpassed 2021 levels by 58%. But the further back you look, the more you’ll understand the bigger picture. And if you go all the way back to 2019, the last normal year in real estate, we’re roughly 35% below the housing supply we had at that time.

 

 

Opportunity #1: Take Advantage of More Options for Your Move

If your current house no longer meets your needs or lacks the space and features you want, this inventory growth gives you even more opportunity to sell and move into the home of your dreams. With more houses on the market, you’ll have more to choose from when you search for your next home.

Partnering with a local real estate professional can help you make sure you’re up to date on the homes available in your area. And when you do find the one, a professional can advise you on how to write a winning offer.

Opportunity #2: Sell While Inventory Is Still Low Overall

But again, despite the growth, inventory is still low compared to more normal years, and that isn’t going to change overnight. For you, that means your house should still be in demand among potential buyers if you price it right.

As an article from realtor.com says:

“Today’s shoppers generally have more homes to consider than last year’s shoppers did, but the market is still not back to pre-pandemic inventory levels.”

Bottom Line

If you’re a homeowner looking to sell, you have more homes to choose from and can still sell your house while inventory is low overall. Let’s connect to get started, so you can have the best of both worlds.

If you’re trying to decide whether or not to sell your house, recent headlines about home prices may be top of mind. And if those stories have you wondering what that means for your home’s value, here’s what you really need to know.

What’s Really Happening with Home Prices?

It’s possible you’ve seen news stories mentioning a drop in home values or home price depreciation, but it’s important to remember those headlines are designed to make a big impression in just a few words. But what headlines aren’t always great at is painting the full picture.

While home prices are down slightly month-over-month in some markets, it’s also true that home values are up nationally on a year-over-year basis. The graph below uses the latest data from S&P Case-Shiller to help tell the story of what’s actually happening in the housing market today:

 

 

As the graph shows, it’s true home price growth has moderated in recent months (shown in green) as buyer demand has pulled back in response to higher mortgage rates. This is what the headlines are drawing attention to today.

But what’s important to notice is the bigger, longer-term picture. While home price growth is moderating month-over-month, the percent of appreciation year-over-year is still well above the home price change we saw during more normal years in the market.

The bars for January 2019 through mid-2020 show home price appreciation around 3-4% a year was more typical (see bars for January 2019 through mid-2020). But even the latest data for this year shows prices have still climbed by roughly 10% over last year.

What Does This Mean for Your Home’s Equity?

While you may not be able to capitalize on the 20% appreciation we saw in early 2022, in most markets your home’s value, on average, is up 10% over last year – and a 10% gain is still dramatic compared to a more normal level of appreciation (3-4%).

The big takeaway? Don’t let the headlines get in the way of your plans to sell. Over the past two years alone, you’ve likely gained a substantial amount of equity in your home as home prices climbed. Even though home price moderation will vary by market moving forward, you can still use the boost your equity got to help power your move.

As Mark Fleming, Chief Economist at First American, says:

“Potential home sellers gained significant amounts of equity over the pandemic, so even as affordability-constrained buyer demand spurs price declines in some markets, potential sellers are unlikely to lose all that they have gained.”

Bottom Line

If you have questions about home prices or how much equity you have in your current home, let’s connect so you have an expert’s advice.

Each year, homeowners planning to make a move are faced with a decision: sell their house during the holidays or wait. And others who have already listed their homes may think about removing their listings and waiting until the new year to go back on the market.

The truth is many buyers want to purchase a home for the holidays, and your house might be just what they’re looking for. Here are five great reasons you shouldn’t wait to sell your house.

1. While the supply of homes for sale has increased this year, there still aren’t enough homes on the market to keep up with buyer demand. As Nadia Evangelou, Senior Economist & Director of Forecasting at the National Association of Realtors (NAR), explains:

“There’s still this gap between demand and supply because we were underbuilding for many years. . . . So now we see demand is slowing, but it still outpaces supply.”

2. Serious homebuyers are out looking right now. Millennials are driving homebuying demand today, and many are eager to make a purchase. Mark Fleming, Chief Economist at First American, explains:

“While not the frenzy of 2021, the largest living generation, the Millennials, will continue to age into their prime home-buying years, creating a demographic tailwind for the housing market.”

3. The desire to own a home doesn’t stop during the holidays. In fact, homes decorated for the holidays appeal to many buyers. Plus, purchasers who look for homes during the holidays are ready to buy.

4. You can restrict the showings in your house to days and times that are most convenient for you. That can help you minimize disruptions, which is especially important this time of year.

5. Rents have skyrocketed in recent years. And, many buyers are looking to escape rising rents and avoid falling into the rental trap for another year. As an article from Zillow says:

“Over the next 12 months, rents are expected to grow more than inflation, the stock market and home values.”

Your home could be their ticket to leaving renting behind for good.

Bottom Line

There are still many reasons it makes sense to list your house during the holiday season. Let’s connect to determine if selling now is your best move.