ATLANTA — While the average rate for a 30-year mortgage remains over 7%, the metro Atlanta housing market is seeing changes in both available inventory and sales prices.
According to data published by the Georgia Multiple Listings Service, the Atlanta metro saw sales go up by 9% compared to last April, and median prices overall go up 4.2%.
Zooming in on Atlanta’s core counties, which Georgia MLS says are Cherokee, Clayton, Cobb, DeKalb, Douglas, Fayette, Forsyth, Fulton, Gwinnett, Henry, Paulding & Rockdale, sales volume was up a solid 10%.
While sales volumes were up to the tune of millions, inventory increased as well.
In the core Atlanta counties, new listings of houses for sale was up over 35% and active listings were up 46%.
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The larger metro Atlanta area saw new listings up 33% and active listings up 41.7%, according to the GMLS data.
While more inventory means more opportunities for prospective homebuyers, price increases and higher mortgage rates mean costs are overall up, and it’s having an impact on inflation.
The most recent Consumer Price Index report from the U.S. Bureau of Labor Statistics showed the shelter index was again a big factor in overall cost increases for the United States.
According to an economist with Freddie Mac, the federally-backed mortgage company, mortgage rates are up for the fifth week in a row, and the homebuying season is still heated early in the quarter.
“The 30-year fixed-rate mortgage increased for the fifth consecutive week as we enter the heart of Spring Homebuying Season,” said Sam Khater, Freddie Mac’s Chief Economist. “On average, more than one-third of home sales for the entire year occur between March and June. With two months left of this historically busy period, potential homebuyers will likely not see relief from rising rates anytime soon.”
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Combined with gasoline, housing and fuel were responsible for “over half of the monthly increase in the index for all items.”
“The shelter index increased 5.7% over the last year, accounting for over 60% of the total 12-month increase in all items,” minus food and energy, according to BLS.
For Atlantans, that translates to higher rent costs and monthly payments on homes for new buyers.
Channel 2 Action News previously reported that monthly mortgage payments were higher than they’d been in about four years back in March. Compared to March 2020, Atlantas needed to earn more than 94% more per year in order to afford a typical monthly mortgage, based on data from Zillow.
Compared to previous years, rental costs in the Atlanta metro were also higher, with Apartment List reporting prices were up 5.5% compared to the previous year.
Including gasoline while viewing inflation data, relief at the pump is out of sight as well. The average gas price in Georgia, as of Tuesday morning, was $3.45 per gallon, according to the daily AAA gas price tracker. In Fulton County, for example, gas prices were even higher at $3.55 per gallon for regular, unleaded fuel.
While there was a pause on tax collection for fueling up through November, moves to renew or prolong the suspension, or make a more permanent reduction in fuel taxes in Georgia, failed to find muster in the Georgia General Assembly. As a result, Georgians have been paying fuel taxes on gasoline since late November, after lawmakers returned to the Capitol for a special session on redistricting.
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