A Closer Look At The HOUSING MARKET
I t ’ s been quite a year in real estate , might even say a year like few others . Nationally , most markets are finding balance . Some of the “ zoom ” areas that exploded during the pandemic continue to see price drops while other regions continue to experience inventory shortages and high demand . The election , the Fed , and the economy in general had a significant impact on this quarter as buyers hesitated . This was felt in the Greater Atlanta market , but the region continues to enjoy a smoother and more predictable path than most areas of the country .
Q4 is always the slowest quarter of the year . In fact , Greater Atlanta mirrors the national pattern when it comes to overall activity . Looking back over the last three years , Q4 of ’ 24 had the fewest closed sales of any quarter . That is a result of the above mentioned variables combined with owners that didn ’ t need to , or didn ’ t want to move . Interest rate lock is still an influence on sellers here and nationally . Many buyers were tired , happy to sit , enjoy the holidays , and wait for spring .
From a numbers standpoint , closed sales in Q4 24 were down 6.8 % from Q3 23 ; 10,466 vs 11,213 . Active listings rose 20.8 %, from 26,840 to 32,424 units . Homes under contract were up this quarter 2.6 %; from 9,946 to 10,208 units . Absorption rate is a good index of market strength . The percentage of listings that closed in Q4 24 was 32.2 %; under contract was 31.5 %. Each of these is a drop of about 20 % from Q3 23 . In Q4 21 , prior to the rate increases , a staggering 69 % of listings closed . Clearly unsustainable , the market had to slow . At this point , our numbers are much better than the majority of similarly sized markets .
While that data is interesting , the bottom line for just about all home buyers and sellers is price ; what are prices doing ? Prices are up across the board both one year and two years back . Q4 24 vs Q3 23 and 22 shows sold price is + 1.2 % and + 7.5 % respectively . Contract price is + 2.4 % and + 8.2 % respectively and list price is + 2.6 % and + 8.8 % respectively . Even compared to just before the Fed raised rates , prices remain in positive territory . Despite the turmoil over the last three years , the Greater Atlanta real estate market remains strong and consistent .
We expect an increase in activity this spring . The election is over , and buyers have accepted that rates will range between 6.25 % and 7.25 %. More listings will enter the market as “ life happens ” and builders catch up . Q1 25 will be the first real chance to evaluate the impact of the compensation lawsuits . That reinforces the single most important decision a buyer or seller makes , selecting an agent to work with . Real estate is a profession , it takes an extraordinary amount of work to make it look boring . Intimate , local market knowledge , contract and negotiation skills , and an unbridled commitment to your success drive every agent at Ansley Real Estate . This is what we are built for , let us show you what we can do for you .