Georgia Housing Market: Prices, Trends, Predictions 2024

The Georgia housing market continues to be robust by a combination of high demand, limited supply, and steadily increasing house selling prices. A study finds that Georgia has the most overpriced housing market in America. According to data from Florida Atlantic University, Georgia has the most overpriced housing market in the United States, with Atlanta topping the list.

Atlanta, Georgia’s capital city, beats out multiple Florida cities, Charlotte, North Carolina, and Memphis, Tennessee, to take the top spot last year. The researchers used their own methodology combined with open-source data from Zillow and other providers. The data shows that homes in Atlanta are selling for more than 51% more than what they’re worth, leading to a big difference between how much people are paying and how much the home is actually valued.

Read About: Atlanta Housing Market Trends

The study found that the average listing price in Atlanta was $357,677, but the expected home value was only $236,627. This means that if you’re looking to buy a home in Atlanta, you could be paying over $100,000 more than the actual value of the property. There are several reasons why Atlanta’s housing market is so overpriced.

One of the main reasons is the strong job market and the city’s booming tech center. Atlanta is home to several large technology companies, including Google, Microsoft, and IBM. This has led to a large influx of people moving to the city for work, which has caused housing prices to skyrocket. Another reason why Atlanta’s housing market is so overpriced is that the city is a popular destination for retirees and second-home buyers. Many people choose to move to Atlanta for its mild climate, low cost of living, and easy access to recreational activities.

Georgia Housing Prices And Forecast for 2024 and 2025

Here’s an overview of the current market conditions and a look into the top 10 Metropolitan Statistical Areas (MSAs) in Georgia with the most substantial home price growth predictions.

The Georgia housing market continues to show resilience and growth, reflecting broader trends seen across the United States. According to Zillow, the average home value in Georgia stands at $321,821, marking a 4.1% increase over the past year. Homes in Georgia tend to go pending within 29 days, indicative of a market with steady demand.

Key Metrics

For Sale Inventory

As of February 29, 2024, Georgia boasts a for sale inventory of 34,535 properties. This figure reflects the availability of homes for prospective buyers to consider, influencing market dynamics such as pricing and competition.

New Listings

In February 2024, Georgia saw 9,551 new listings enter the market. This influx of properties can impact buyer options and overall market activity, potentially affecting supply and demand dynamics.

Median Sale to List Ratio

The median sale to list ratio, standing at 0.989 as of January 31, 2024, provides insight into the relationship between listing prices and actual sale prices. A ratio close to 1 suggests that homes in Georgia typically sell close to their list prices.

Median Sale Price

As of January 31, 2024, the median sale price for homes in Georgia is $298,833. This metric reflects the middle value of all homes sold during the specified period, offering a benchmark for property values within the state.

Median List Price

The median list price in Georgia, recorded at $347,267 as of February 29, 2024, represents the midpoint of all listed properties in terms of their asking prices. This figure can influence buyer perceptions of affordability and market competitiveness.

Percent of Sales Over and Under List Price

In January 31, 2024, 21.0% of home sales in Georgia were over list price, while 56.4% were under list price. These percentages indicate the prevalence of negotiation in the market, with some properties fetching prices above or below their listed amounts.

Forecast

With a combination of steady demand, moderate inventory levels, and competitive pricing dynamics, the Georgia housing market is poised to maintain its positive trajectory. Factors such as economic conditions, population growth, and interest rates will continue to shape the market’s evolution, influencing both buyers and sellers alike.

Georgia Housing Prices And Forecast for 2024 and 2025Georgia Housing Prices And Forecast for 2024 and 2025
Source: Zillow

Top Areas in Georgia Expected to See the Highest Increases in Home Prices

The Georgia housing market presents several areas poised for significant increases in home prices, according to data projections. Among these regions are Thomaston, Toccoa, Cedartown, Calhoun, and Cornelia.

Thomaston, GA: This metropolitan statistical area (MSA) in Georgia is anticipated to experience a notable uptick in home prices, with forecasts indicating an increase from 0.3% by March 31, 2024, to 6.9% by February 28, 2025. Such growth suggests a robust market demand and favorable conditions for property appreciation.

Toccoa, GA: Another MSA in Georgia, Toccoa, is expected to witness a steady rise in home prices, with projections indicating an escalation from 0.5% by March 31, 2024, to 5.3% by February 28, 2025. This trend underscores the attractiveness of the area for potential buyers and investors seeking value appreciation.

Cedartown, GA: Cedartown emerges as a promising location for prospective homebuyers, with forecasts pointing towards a gradual increase in property prices. Projections suggest growth from 0.7% by March 31, 2024, to 5.1% by February 28, 2025, reflecting sustained market demand and favorable economic conditions.

Calhoun, GA: In Calhoun, Georgia, expectations are high for a rise in home prices, with forecasts indicating an escalation from 0.8% by March 31, 2024, to 4.6% by February 28, 2025. Such projections signal opportunities for homeowners and investors alike to capitalize on potential gains in property values.

Cornelia, GA: Cornelia rounds out the list of areas poised for significant increases in home prices in Georgia. Projections suggest a rise from 0.3% by March 31, 2024, to 4.5% by February 28, 2025, reflecting the area’s appeal and potential for real estate appreciation.

Fitzgerald, GA: This MSA in Georgia is projected to experience a significant rise in home prices, with forecasts indicating an increase from 0.7% by March 31, 2024, to 4% by February 28, 2025. Such growth reflects positive market sentiment and the area’s appeal to potential buyers and investors.

Statesboro, GA: Another MSA in Georgia, Statesboro, is anticipated to see an uptick in property prices, with projections suggesting an escalation from 0.7% by March 31, 2024, to 3.9% by February 28, 2025. This trend underscores the region’s attractiveness and potential for real estate appreciation.

Athens, GA: Athens emerges as a promising location for property investment, with forecasts pointing towards a gradual increase in home prices. Projections suggest growth from 0.5% by March 31, 2024, to 3.3% by February 28, 2025, reflecting sustained demand and favorable market conditions.

Gainesville, GA: In Gainesville, Georgia, expectations are high for a rise in property values, with forecasts indicating an escalation from 0.4% by March 31, 2024, to 3.3% by February 28, 2025. Such projections signal opportunities for homeowners and investors to capitalize on the area’s potential for real estate appreciation.

Jefferson, GA: Jefferson is poised to see an increase in home prices, with projections suggesting a rise from 0.5% by March 31, 2024, to 3.1% by February 28, 2025. This indicates a positive market outlook and opportunities for growth in property values.

Savannah, GA: Savannah presents opportunities for property appreciation, with forecasts indicating an uptick from 0.5% by March 31, 2024, to 3% by February 28, 2025. The region’s appeal and economic vitality contribute to its potential as a lucrative real estate market.

Albany, GA: Finally, Albany is expected to experience growth in home prices, with projections suggesting an increase from 0.7% by March 31, 2024, to 3% by February 28, 2025. Such forecasts underscore the area’s resilience and potential for real estate investment.

Hinesville, GA: This MSA in Georgia is projected to experience moderate growth in home prices, with forecasts indicating an increase from 0.5% by March 31, 2024, to 2.8% by February 28, 2025. Despite a slightly slower pace compared to other areas, this uptick reflects positive market sentiment and steady demand.

Bainbridge, GA: Similarly, Bainbridge is anticipated to see a gradual rise in property prices, with projections suggesting an escalation from 0.3% by March 31, 2024, to 2.8% by February 28, 2025. Such growth underscores the area’s resilience and attractiveness to potential buyers.

St. Marys, GA: St. Marys presents opportunities for modest growth in home prices, with forecasts indicating an increase from 0.3% by March 31, 2024, to 2.6% by February 28, 2025. Despite a relatively slower pace, the region’s appeal and potential for appreciation remain evident.

Atlanta, GA: As the capital city and major metropolitan area of Georgia, Atlanta is expected to see a steady rise in property values. Projections suggest an uptick from 0.4% by March 31, 2024, to 2.4% by February 28, 2025, reflecting the city’s economic vibrancy and continued demand for housing.

LaGrange, GA: LaGrange emerges as a promising location for property investment, with forecasts pointing towards a gradual increase in home prices. Projections suggest growth from 0.5% by March 31, 2024, to 2.4% by February 28, 2025, reflecting sustained demand and favorable market conditions.

Rome, GA: Finally, Rome is expected to witness growth in home prices, with projections indicating an increase from 0.4% by March 31, 2024, to 2.4% by February 28, 2025. Such forecasts highlight the region’s potential for real estate appreciation and opportunities for investors.

Factors Influencing the Georgia Housing Market:

Several factors contribute to the state of the housing market in Georgia:

  • Mortgage Rates: Fluctuating mortgage rates impact buyers’ purchasing power and can affect demand for homes. Buyers may be hesitant to enter the market if rates continue to rise significantly.
  • Inventory Levels: The supply of available homes for sale affects market dynamics. A shortage of inventory can drive up prices, while a surplus can lead to price stagnation or decline.
  • Economic Conditions: Georgia’s overall economic health, job market, and business climate can influence the housing market. Economic growth typically drives demand for housing.

Will The Georgia Housing Market Crash?

We continue to hear rumors of a market crash, but local data does not corroborate this at this time. We’re not seeing any major home price decline or crash in the Georgia housing market just yet. There are certain factors that suggest that the market may remain strong. Georgia has a robust and diverse economy with industries such as logistics, film, and technology, which have been growing rapidly in recent years. The state also has a pro-business environment, low taxes, and a relatively low cost of living compared to other states.

Georgia is predicted to remain a top-ranked state and relocation destination. The flood of new inhabitants will increase competition and limit housing availability, making Georgia real estate even tighter. According to YouGov, Georgia is ninth on the list of all US states sorted from best to worst, according to Americans.

YouGov asked people to choose the better of two states in a series of head-to-head matchups. States were rated based on their “win percentage”, that is: how often that state won the head-to-head matchup when it was one of the two states shown. Georgia Two other destinations for warm weather and ocean coastlines landed in ninth and tenth place, respectively: Georgia (58%) and Texas (58%).

Over the past decade, the state has experienced significant population growth, with an increase of over 1 million people from 2010 to 2020, according to the US Census Bureau. This growth has been driven by a combination of factors, including a strong economy, a relatively low cost of living, and a warm climate.

The influx of new residents has put pressure on the housing market, particularly in cities such as Atlanta and Savannah. As more people move to Georgia, the demand for housing increases, which can lead to rising prices and a shortage of affordable housing options. This has made it challenging for some residents to find suitable housing, especially those with lower incomes.

Another factor that affects the housing market in Georgia is demographic change. The state has a growing number of young professionals and retirees, both of whom have different housing needs. Young professionals tend to prefer urban areas with easy access to amenities, while retirees often prefer quieter suburban or rural communities. This has led to a growing demand for both urban and suburban housing in Georgia.

In addition, Georgia’s population growth has also been driven by a diverse range of ethnic and racial groups. This diversity has contributed to the state’s vibrant culture and strong economy, but it also presents unique challenges for the housing market. Different ethnic and racial groups may have different housing preferences, which can affect the availability and affordability of housing in certain areas.

That being said, there are always risks and uncertainties in any housing market. Factors such as changes in interest rates, job losses, and a slowdown in the economy could potentially impact the demand for housing and cause prices to fall.

In conclusion, while there are some positive signs for the Georgia housing market, it is always important to be cautious and keep an eye on market trends. The strong economy and growing population make Georgia an attractive place to live and do business, but the limited housing availability and increased competition could make it challenging for some buyers.


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