Prices Up, Sales Down: Highlights from the 2022 Georgia Housing Market Annual Report

2022 began where 2021 left off – mortgage rates were near historic lows, buyer competition was fierce, and homes were selling at a breakneck pace, often with multiple bids and all-cash offers, due to pent-up demand and a shortage of housing supply, causing sales prices to soar to new heights. But all that changed a few months later as mortgage rates began to rise, adding hundreds of dollars to monthly mortgage payments and causing housing affordability to plummet to its lowest level in decades. As borrowing costs continued to increase, home sales and home prices began to slow, and after two years of record-breaking activity, the red-hot housing market was finally cooling.

Here are a few highlights from the 2022 Annual Report on the Georgia Housing Market:

• Pending sales decreased 17.8 percent
• Closed sales were down 15.4 percent
• Inventory was up by 55.9 percent
• Months supply was 4.5 months for new construction and 1.8 months for existing homes
• Median sales price increased 15.2 percent to $339,900 for the year
• Single Family home prices were up 16.7 percent and Townhouse-Condo home prices were up 15.2 percent.

Looking ahead, much depends on inflation, mortgage interest rates, and the broader state of the economy, although economists predict many of 2022’s housing trends will continue into the new year: home sales will soften, price growth will moderate, inventory will remain tight, and there will be greater variability between markets nationally, with some regions possibly seeing price declines while other, more affordable areas of the country remain in high demand and experience price growth.

2022 Georgia Housing Market Annual Report.

GAR Monthly Indicators are derived from data from 14 MLSs throughout Georgia.