ATLANTA — After several record months of soaring prices, the housing market in the Atlanta metro area is finally starting to calm down.
The median sale price in the city in July was $422,500, up nearly 16% from the same time last year but down 2% from a month ago.
Reasons for the change include rising mortgage rates and inflation, according to data from First Multiple Listing Service.
The service says the housing market tends to decline in the summer as people go on vacation.
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Multiple factors — both existential and experiential — affected the July market, said Rob Smith, a broker at Keller Williams.
In mid-July, the US Federal Reserve announced that it would raise its benchmark interest rate by 0.75% for the second consecutive month.
“For about three weeks straight, [buyers] woke up with a 5 gallon bucket of ice cold water thrown in their face,” Smith said.
These factors, combined with the fact that many potential buyers were shut out by high prices and rising mortgage rates, led to a 31% annual decline in home sales last month.
Metro Atlanta housing inventory hit its highest level since September 2020 and grew 34% year-over-year. July was the fourth straight month in which stocks rose on an annual basis, ending a nearly three-year streak of declines.
The metro area had a nearly two-year supply of homes for sale in July, still well below the four- to six-month supply that real estate professionals consider a typical seller’s market.
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