A Complex Landscape Emerged for Buyers and Sellers Alike in 2023

(ATLANTA – January 30, 2024) — The 2023 Georgia Housing Marketing Annual Report has been released, giving a snapshot of a complex year in real estate. 

In 2023, the Georgia housing market underwent a series of shifts shaped by contrasting trends. Higher interest rates played a pivotal role in the market, with both buyers and sellers waiting for more favorable rates. Home prices posted gains, but not the double-digit increases that we’ve seen in recent years.

One of the most notable shifts was the ten percent decrease in new listings. This reduction in supply was mirrored in the 12 percent decrease in pending sales and the subsequent 15 percent drop in closed sales. As the number of days on market increased by 43 percent, reaching 40 days, it became apparent that buyers were taking a more cautious approach, carefully weighing their options before committing to a purchase.

Amidst these shifts, however, the Georgia housing market demonstrated resilience in terms of pricing. The median sales price experienced a modest three percent increase, reaching $350,000, while the average sales price climbed by four percent to $417,957. This price appreciation could be seen as a reflection of the enduring value of real estate in the state, even in the face of changing market dynamics.

The inventory levels told a tale of their own, with a three percent decrease in the year-end count, amounting to 25,750 units. However, a closer look at the supply of inventory revealed a divergence between previously owned and new construction properties. The months’ supply of inventory for previously owned homes increased by 14 percent, reaching 2.5 months, while new construction experienced a contrasting 20 percent decrease, settling at 3.3 months. This hinted at a potential preference among buyers for newer homes, possibly driven by factors such as modern amenities and updated designs.

The negotiation landscape also presented a mixed picture, with new construction homes commanding an impressive 99 percent of the original price, while previously owned properties secured 96 percent. This discrepancy suggested that sellers of new construction homes were able to retain a higher proportion of their asking prices, possibly owing to the allure of a pristine, untouched property.

In conclusion, the picture of the Georgia housing market in 2023 was a complex one, with reduced listings and sales activity countered by resilient pricing and a preference toward new construction properties. As the market navigates these nuances, homebuyers and sellers in Georgia are tasked with navigating a dynamic real estate landscape into 2024 and beyond.

However, GAR 2024 President Jim Barner has one important reminder in regard to the housing market. “While this report tells us about trends in Georgia in 2023, buyers and sellers need to remember that all real estate is not only local, but hyperlocal,” he said. “If consumers are looking to buy or sell a home in 2024, I think the best first step would be having a conversation with a Realtor who is local to your area to see how these indicators compare to what’s going on in your area.”

Barner continued, “You may be looking at a higher sales price, or more plentiful inventory, or any other myriad of possibilities where your local market could be different from the trends highlighting in this report.”

The 2023 Georgia Housing Market Annual Report is compiled from the data of 14 MLSs across the state and represents more than 95 percent of the real estate activity in Georgia.

Georgia REALTORS® is a voluntary professional association comprised of approximately 48,000 licensed real estate brokers and salespersons engaged in all aspects of the real estate business throughout the state. Georgia REALTORS® is the leading advocate for the real estate industry in Georgia, committed to protecting private property rights and free enterprise, maintaining ethical and professional standards, and enhancing the public’s awareness and confidence in REALTORS®.

Click here to access the report.

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