ATLANTA — Atlanta’s housing market heat level fell slightly, according to the latest data from real estate company Zillow. They said inventory was up, easing competition for buyers.
The company’s market heat index report for April shows Atlanta’s heat level has fallen a few points, entering the “neutral” zone, rather than being a seller’s market or strong seller’s market.
The decline to neutral shows how the overall Atlanta housing market has trended since mid-2022, when the metro area was a strong seller’s market. Over the next year and a half or so, the Zillow data shows some fluctuation but an overall decline through April 2024, where the heat index decreased.
[DOWNLOAD: Free WSB-TV News app for alerts as news breaks]
Now, Zillow says Atlanta’s inventory level of available homes to buy has gone up 32.3% from last year and that more sellers are joining the market.
In addition to the expanded inventory, Zillow reported the number of listings with with price cuts had hit 25.5% of the market in the Atlanta metro area, and that price cuts had gotten more common since last year, as much as 7.1% more common.
TRENDING STORIES:
- Police will now arrest any Atlanta passenger found with loaded, unholstered guns at checkpoints
- APD officer arrested for killing Lyft driver giving him a ride home, police say
- Body found on Atlanta road under I-285 overpass, police investigating
The Atlanta metro area, like the rest of the United States, has seen inventory increase as mortgage rates rose, which Zillow said helped ease competition.
With the mortgage rates average above 7% for four weeks straight, according to federally-backed mortgage company Freddie Mac, increased inventory may not equal increased affordability. The national mortgage rate reported by Freddie Mac updates every Thursday at noon.
Zillow reports the typical home value in the metro area is still up 4.7% compared to the previous year, hitting levels around $386,200.
On top of the fluctuation in the market for inventory and cost from mortgage rate changes, overall housing affordability remains top of mind. The latest inflation report from the Bureau of Labor Statistics showed that the cost of housing was a significant driver of inflation in the past month, alongside gasoline.
That said, housing was the bigger factor for inflation, BLS said.
“The shelter index increased 5.5% over the last year, accounting for over two thirds of the total 12-month increase,” according to the April Consumer Price Index.
“The index for shelter rose in April, as did the index for gasoline. Combined, these two indexes contributed over 70% of the monthly increase in the index for all items,” BLS added.
In the Atlanta area, which reported on a two-month inflation trend from December to February, the cost of housing was a major contributor to the area’s overall increases in cost, as previously reported by Channel 2 Action News.
[SIGN UP: WSB-TV Daily Headlines Newsletter]
IN OTHER NEWS:
©2024 Cox Media Group
