ATLANTA, GA - In May, Beacham & Company set an all-time sales record for number of sales in a month, while dollar volume of real estate sold was the second highest ever. The firm's number of home sales exceeded May 2016 by 22.5% and dollar volume increased 18.2%. The monthly records for May also marked the third time this year the firm has set all-time records for monthly production.
While complete May figures for the five core Atlanta counties (Cobb, DeKalb, Forsyth, Fulton, Gwinnett) will not be available for several weeks, it appeared the overall market gained strength after a down month in April. Year-to-date through May 15, the number of sales rose 3.6% from the same period a year ago while dollar volume sold increased 8.5%. After a down year in 2016, Buckhead rebounded with a 13.2% rise in home sales and a 12.9% increase in dollar volume closed. Other areas of strength included North Fulton (Alpharetta, Milton, Roswell) and Smyrna.
The average sales price for a single family detached home in Atlanta was at an all-time high in April of $337,767. The high water mark is especially noteworthy because price records are always set in June or July when demand in the 12-month real estate cycle peaks because of families moving in preparation for the next school year. The unusual timing of the record was a result of a market where demand continued to outpace inventory among homes priced less than $750,000. The months supply of inventory in that price range is well short of six months, an industry benchmark for a market in balance between supply and demand.
Further evidence of an overheated market: the National Association of Realtors reported this week that the number of days on market in the United States was less than 30 days for the first time in history, although in Atlanta it was slightly higher (34 days for condos/townhomes, 45 days for single family detached homes). The best solution to the inventory challenge according to economists including Georgia State University real estate professor Jonathan Wiley is for builders to ramp up production of new construction homes. In Atlanta, builders appear to have listened; starts of single family detached homes in the area are up 7.7% in 2017 according to the U.S. Census Bureau.