Georgia Housing Market Finishes Strong in 2020

Despite the dip during the March/April lockdown, the Georgia housing market roared back in the second half of 2020, with a marked increase in activity and prices. Record low mortgage rates coupled with consumers looking for larger spaces drove buyer activity, setting the stage for a seller’s market, which resulted in the return of multiple bid situations throughout the state. Inventory was tight throughout the year, with lower seller activity preventing a build up of homes for sale.

Here are key indicators from the Georgia REALTORS® 2020 Housing Market Annual Report:

  • New Listings decreased five percent to 185,081
  • Pending Sales were up 11 percent to 158,513
  • Closed Sales were up nine percent to 153,355
  • Inventory levels shrank 46 percent to 20,947 units
  • The Median Sales Price increased 10 percent to $252,541
  • The Average Sales Price increased 10.5 percent to $302,332
  • Days on Market decreased seven percent to 51 days
  • Months Supply of Inventory was down 50 percent to 1.6 months

Dorrie Love, 2021 President of the Georgia REALTORS®, believes that while the metrics for 2020 are favorable, they don’t tell the whole story. “What a remarkable year it was for housing in Georgia,” she said. “But I think if we were able to isolate these indicators for only the second half of the year, we’d see even more significant gains for prices as well as pending and closed sales.”

Love sees the momentum of the second half of 2020 as being a bellwether for the 2021 housing market.

“While the numbers for 2020 are positive and steady, I don’t think it reflects the state of the market going into 2021,” she said. “Low inventory throughout the state – and not just in the larger cities – is driving up prices and activity is more robust this winter than I have ever seen it at this time of year, which is traditionally a period of reduced activity” she added.

The Housing Supply Overview – which takes a closer look at key metrics in relation to price range, property type and bedroom count – reveals the following indicators:

  • Median Sales Prices increased ten percent for both single family homes ($256,000) and townhome/condos ($230,000)
  • Homes listed at $1,000,000 and above had the longest Days on Market (88), while homes listed in the $150,000-$250,000 range had the lowest (40).
  • Closed Sales increased in all properties priced at $150,001 and above, while homes priced at $150,000 and below saw decreased Closed Sales year over year.
  • All bedroom types saw a six percent increase in Closed Sales
  • For Months Supply of Inventory, New Construction posted 2.1 months, whereas Previously Owned homes had a supply of only 1.2 months.

“The numbers clearly indicate a healthy housing market as we head into 2021, despite the issue of low inventory,” said Love. “For buyers, interest rates are historically low, and prices are excellent for sellers. It’s a win-win for both parties. We expect a strong, healthy market throughout 2021, barring any unforeseen circumstances.”

Click here to access the full report

 

NOTE: Indicators are derived from 14 multiple listing services throughout Georgia, and while trends and percentages are accurate, precise numbers may vary.


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