Atlanta home prices have inched higher after three months of declines, but that's not enough to keep buyers from driving hard bargains.
The Atlanta metropolitan area's median sales price for all property types in August was $400,000, up 0.3% from a year earlier, according to Homes.com.
Though negligible, it was the first increase after annual drops in May, June and July. The June decline of 3% was the worst among the 40 largest U.S. housing markets, Homes.com data shows.
Rising numbers of listings in Atlanta and other markets have served to level prices, analysts say.
"The West and South may offer more opportunities for buyers, especially in metros where inventories are growing and prices are cooling," said Erika Ludvigsen, national director of residential analytics at Homes.com, last month.
But even as Atlanta prices improve, buyers remain firmly in control, according to David Canaday, an agent for Watkins Real Estate Associates in Stockbridge, Georgia.
Buyers want concessions
Buyers expect properties to be in pristine condition and are unlikely to even consider homes that need new floors or other upgrades, Canaday and other agents say.
In some cases, Canaday said, he'll pull comps for specific neighborhoods for his buyer clients, letting them know the homes they're considering are priced fairly. In the past, that would have been enough for them to make a strong offer at or even above list price.
"Now, they're still wanting to negotiate," he told Homes.com.
Those negotiations often extend beyond price, with buyers asking for closing costs or other concessions that sellers find unacceptable.
"There continues to be a gap between where sellers are willing to meet buyers," Canaday said.
The market for Atlanta-area condos and townhouses appears to have slowed, with buyers generally preferring single-family homes, Canaday said. But he's noticing an uptick in overall activity just since Labor Day, a possible sign that buyers expect the Federal Reserve to reduce interest rates next week.
If the Fed cuts rates by 25 or 50 basis points and signals future cuts, "rates should start to move down to levels that will really bring buyers out," he said.