Some of you may have noticed that homes don't seem to be selling quite as quickly as they were a few months ago. If you keep up with the Atlanta market closely, you may have seen a few more price reductions than before. Is the Atlanta market in for a shift?

Yes and no.

When you compare days on the market, we are actually 3 days shorter than this time last year (FMLS InfoSparks Stats). That would indicate that we are actually shifting in a positive direction. Shorter days on the market means that homes are selling in less time than they did last year. We also had a little more supply than we did this time last year. We had 3.2 months supply in September 2017 and 3 months supply in September 2018 (FMLS InfoSparks Stats). Median price is up over 20k since this time last year. The numbers can vary depending on the neighborhood and housing type (condo vs. house), so the stats don't always reflect what is happening in your area. There are definitely more price reductions and less tolerance for poorly presented homes. Could it be that the market is just correcting itself from the extreme seller's market we have been in the past couple of years?

 

                                    

At some point home prices begin to surpass what the average person earns. At that point, people either continue renting, or purchase in an area that is less expensive. We have seen many neighborhoods experience tremendous growth because buyers have been priced out of other areas. This can only go on for so long before people decide that they don't like their options and opt to hold off on purchasing. Once that happens, inventory increases, and we start to see a shift towards a buyer's market. 

While I don't think we are in a buyer's market, I do think that there has been a shift. We are entering a balanced market. Buyers can look for homes, consider their offer, and even get a little more help from the seller in the form of closing costs, repairs, and price flexibility. 

What does this mean for sellers? Sellers simply need to put their best foot forward when listing their home and price it realistically. It does not mean that they will lose money when they sell. In many cases, buyers were backing out after hastily submitting an offer. When offers fall through, that can be frustrating and sometimes costly for sellers. Ultimately, the slight shift we are seeing is better for buyers and sellers. Sellers know that a buyer has had time to do their initial due diligence before putting in an offer, and the buyer feels like they got a fair deal.