4 Drivers of the Real Estate Market
Here’s a look at the four main factors driving the current market.
Many people are focused on the impacts of rising interest rates in today’s market but, they aren’t the only things that we need to pay attention to. Today I’ll discuss the four key factors influencing our current market conditions:
1. Inventory. The Atlanta metro is still very much in a seller’s market. Our inventory rose by 16.1% since last month. We currently have an average of 1.01 months of supply, meaning that if no new homes came on the market, we’d sell out of all our available homes in around a month. Though the market is still hot, it is beginning to cool a little bit.
2. Demand. I judge demand based on how many showings our listings receive on average. Month over month, showings are down by 11.5%. This drop in demand is likely due to rising interest rates and inflation, which reduce a buyer’s purchasing power.
"Though the market is still hot, it is beginning to cool a little bit."
3. Home prices. Typically, rising inventory and shrinking demand lead to reduced home prices, but so far, we haven’t seen that in our market. In fact, prices in the Atlanta metro are up 3.6% from April. We’ll continue to watch home price trends and keep you updated as things change.
4. Home sales. Home sales have dropped by 10.8% year over year, and I expect that will cause homes to linger on the market longer than they have previously.
If you have any questions about what’s going on in the market or how conditions affect your real estate plans, don’t hesitate to give me a call or send me an email. Hope to hear from you soon!