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By Harry Norman, Realtors®
Atlanta is frequently called “the Crown Jewel” of the Southeast. The city is home to 17 Fortune 500 company headquarters including Delta, Home Depot, UPS, Coca-Cola, WestRock, and more, attracting people from across the US and globally to relocate here. Lower business operating costs and a relatively low cost of living are reasons often cited by relocating companies, along with access to the world’s busiest airport.
About 42% of metro Atlanta listings received multiple offers in July. That was down from 54% in June and 60% in July 2021. Overall, sales dropped 26% during that month compared to the same month a year ago. The median sales price in July was $420,000, up 16% year over year, but it fell 2% from June’s record high. July was the first month since January that metro Atlanta did not set a record for median home price. Our housing inventory also rose to its highest level since September 2020 and continues to increase.
The average home in metro Atlanta’s 12-county core sold for slightly below the asking price in August. It was the first month since February 2021 in which Atlanta’s average sales price was below the asking price. Premiums for Atlanta homes reached a high in May when the average home sold for 3.4% above the asking price. In the months since, rising mortgage rates have cooled our market. “It continues to look like we are settling into a market that is very much like the last ‘normal’ year we can remember – 2019,” MarketNsight Principal and Chief Analyst John Hunt said.
Ebby Halliday Companies
The greater Dallas area market saw a moderate overall decrease in the number of new listings and pending sales. Meanwhile, it saw an increase in properties sold in the 2nd quarter of 2022 when compared to the same time in 2021.
The Dallas area ended the 2nd quarter of 2022 in a seller’s market with a 2.4 months’ supply of inventory. North Texas is continuing to face pressure on inventory that is contributing to the increasing rise in home value across the region. The average sold price increased from $409,000 in June 2021 to $488,000 in June 2022 – a 19% increase. The average price per square foot increased by 22% in the same time frame ending at $226 per square foot in June 2022.
All in all, Dallas’ economic environment continues to drive an influx of new residents and overall demand for housing remains strong. Sellers are still able to take advantage of all-time-high prices and strong demand for listings. Price appreciation is continuing but at a slower pace. Inventory is growing in most markets alongside a drop in pending transactions, giving buyers a welcome respite from the frenzy earlier in the year with more options and less competition. We plan to see a dose of normalcy in the market in the coming months, and that is not a bad thing.
John L Scott Real Estate
The Seattle market has shown resilience through the market adjustment this summer. In the more affordable and mid-price ranges, buyer demand remains strong.
Housing inventory in the Northwest MLS reached its highest point since January 2019. The 2.01 months of housing supply in July is the most since it was 2.3 months three-and-a-half years ago. King County had about seven weeks of inventory at the end of July (1.86 months) – more than double May’s supply of 0.83 months. While inventory is on the upswing, anything less than four months of inventory is still considered a sellers’ market. The median price of homes in King County rose about 2.7% from $789,000 in June to $810,000 in July. Sellers are still seeing offers at or above the asking price, and properties are still moving quickly.
The market is shifting, though. Active listings nearly doubled year-over-year, and new listings grew 14.7% to 11,805 from June to July. Pending sales are down 24% and closed sales decreased 30% compared to July 2021. These numbers point to a real estate market moving in favor of buyers.
TAMPA BAY, FL
Florida Executive Realty
Like most of the country, Tampa, FL is seeing some moderation in the pace of the real estate market. The last 2.5 years have brought many surprises, but arguably none more surprising than the drastic increase in buyer side demand for housing. Tampa’s residential housing inventory levels hit the record low at 0.63 months of inventory in March 2022. Since then, the inventory levels have risen to 2.6 in July. Although this rise in inventory has provided more options for buyers and less stressful moving conditions for sellers, it is still a long way off from a more balanced market of 5 months of inventory.
Prices of homes have continued to rise at a staggering pace. In July of 2022, the average sales price in Tampa was $475,227 which is up 27.6% over July of 2021. The normal pace of appreciation in Tampa is about 3.5% annually. So, while the rise in homeowner’s equity is fun, the current rate of appreciation is unsustainable and making first-time homeownership more difficult. The rise is inventory, as well as interest rates, should have a moderating effect on the price appreciation over the next few months. Although nothing in the real estate market or economy leads us to believe there is a bubble coming.
Overall, the market is transitioning back into a more normal state. While any changing market can be a little scary, this is a positive change for the overall market health and sustainability moving forward.