April Intown Market Report
By Bill Adams, President
The Average Sales Price (ASP) for the Intown Atlanta Market this month is $817,740. The April 2025 ASP reflects an 11% price increase since last April and a 16% increase since April 2023. The Number of Days on the Market has been stable over the last several months at 41 days. This is still an 11% increase over the last year and a 41% increase in the last 24 months. I feel like the increase in the time properties are on the market is the direct result of higher interest rates limiting the number of potential buyers. The Number of Units Sold fell below 1,400 sales for the first time in recent years. Only 1,388 houses sold in the last 12 months. This represents an 8% decrease since last year and a 23% decrease over the last two years. The culprits that are causing a slowdown in transactions are high mortgage rates and low inventory. The Total Sales Volume did increase by 2% over the last 12 months to $1,135,023,157.
This month the big topic of conversation revolves around tariffs. The Trump Administration’s tariffs on products from around the world are bound to have a negative effect on the housing market. According to the College of Natural Resources at NC State University, the US imports up to 30% of softwood lumber used in construction from Canada. In addition, the US imports about 25% of its cement from Canada and about 10% from Mexico. Many appliances and other building materials are sourced from outside the US. If the tariffs on these items are passed on to consumers, the cost of construction of new single-family homes as well as renovation projects on existing homes will be negatively affected by tariffs. An already expensive housing market will be even more costly with the tariffs in place. Many economists expect that tariffs will increase inflation. The 10-year Treasury Bill, which is a benchmark for home mortgages, is likely to rise with inflation and thus, mortgage rates will also increase. One recent troubling trend is the drop in bond prices and the corresponding increase in yields caused by investors fleeing US Treasury bonds. The chaos around the tariffs has caused some international investors to seek alternatives to the bonds that were once thought of as a safe haven. As stated earlier, higher 10-year Treasury yields will translate into higher home mortgage interest rates. The combination of higher construction costs and higher interest rates will put the dream of homeownership out of reach for many Americans.
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