A Closer Look At The HOUSING MARKET
W e’ ve all experienced it— that persistent alarm clock and the familiar inner voice urging us to get moving, even as we reach for the snooze button one more time. In the first quarter of 2025, the Greater Atlanta housing market seemed to do just that, hesitant to rise and shine. This sluggish start wasn’ t unique to Atlanta, as much of the nation decided to sleep in during the first quarter.
The spring market is always eagerly anticipated, we tend to shake off the holidays much quicker than most regions. With the election over and buyers grudgingly accepting mortgage rates, everyone anticipated a busy first quarter. It was, for a very short time, until two very cold spells and unexpected economic turmoil hit. While activity remained, it was less than anticipated. Greater Atlanta continues as one of the stronger national markets, but Q1’ 25 underperformed expectations.
Our market continues to be a healthy, balanced one. While transaction numbers are down, home prices remain firm. None of the gains made over the last several years were lost and while we see the normal seasonal fluctuations, there is no sign of weakening prices. Homes were listed + 3.5 % in Q1’ 25 compared to Q1’ 24. Sellers are not discounting prices and at this point, the idea to“ wait to buy” doesn’ t necessarily apply here. The median list price is $ 440K this quarter. Sale prices are + 0.5 % and contracts-0.9% Q1’ 25 vs Q1’ 24, essentially flat and sitting at a sale price median of $ 427K and contract median of $ 436K. Looking back, sale prices in Q1’ 25 compared to Q1’ 23 and Q1’ 22, were up + 6,1 % and 6.2 % respectively. Our market is not giving the price gains back.
We see lethargy when we look at transaction numbers. Every spring market brings an increase in homes for sale, the number of listings is + 15.4 comparing Q1’ 25 to Q1’ 24. There were 35,582 homes listed, not the highest number over the last three years and similar to mid’ 22. There were 11,986 homes under contract,-11.5% less than in Q1’ 24. A total of 10,162 homes closed,-8.7% less than Q1’ 24 and in the lower tier of the last three years. Put another way, 33.69 % of listings went under contract in Q1’ 25, down from 43.92 % Q1’ 24. 28.56 % of homes closed, down from 36.08 % in Q1’ 24. The buyers are slow out of the gate, both nationally and in Greater Atlanta.
Now for context – because without it, none of this really makes sense. An absorption rate above 20 % signals a seller’ s market, about 15 %-20% is considered neutral below 15 % a buyer’ s market. Prices have not dropped, while seasonal fluctuations are normal, year over year and longer views show strength. Listings have been pent up( sellers holding on to low rates), numbers will rise as they come to market offering buyers more opportunity – balance. Many variables are always at play, it takes skill to collect, decipher and interpret the data.
At Ansley Real Estate, every agent is a dedicated professional with the experience and expertise to guide you when it matters most. We’ re full-time experts, committed around the clock to one mission: helping you achieve the best possible outcome in your real estate journey.