By Bill Adams, MBA, CCIM, CRB, ALC
Welcome to the July 2022 Intown Market Report. I’ll first review the overall monthly numbers for the market and then take a look at price appreciation in some of our Intown Atlanta neighborhoods over the past decade.
As of this month – July 2022 – the average sales price for the Intown Atlanta market is $661,845, which is roughly a $5,000 increase over June’s average and a year-over-year increase of 14%. The typical house for sale was on the market for just 26 days, a 31% decrease over the past 12 months. Although the total number of houses sold decreased by 15% over the last year with 2,353 houses sold.
So far none of these numbers, except for the number of units sold, reflect a weakening of the housing market. One could argue that the fall-off in the number of houses sold is still primarily due to the lack of inventory.
Next, I would like to look at price appreciation over the last decade in the small municipalities that are covered in our Intown Atlanta market survey. Many of these cities were negatively affected by the Great Recession and most had housing stock that was considered affordable.
The table above reflects the dramatic price appreciation that occurred in the market over the last 10 years. For example, the average sales price in July 2012 in College Park was $91,051 while it is now $406,754 – a huge 447% increase. In Decatur, the average sales price in July 2012 was $382,482 while it is now $782,592 – a 205% increase.
This appreciation has been driven by a strong economy, population growth and low mortgage interest rates. A decade ago, first-time buyers could purchase a home in College Park, East Point, Hapeville, and Pine Lake for under $100,000. Now all these neighborhoods are on the verge of becoming unaffordable. Avondale Estates and Decatur, which were somewhat affordable in 2012, are out of reach for many purchasers today.
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