A sharp increase in for-sale signs across Atlanta led to the biggest drop in home prices in more than a decade, new data shows.
The June median sale price in the Atlanta metropolitan area was $407,500, down 3%, or $12,500, from the same period a year ago, according to Homes.com. It was the biggest decline in the country and the Atlanta market's worst fall since 2012.
Atlanta's price decline compares to a 1.3% increase nationwide.
Meanwhile, the number of Atlanta-area listings last month hit 28,458, a 35% annual increase that ranks as the fourth-largest nationwide, the Homes.com data shows. In May, Atlanta led the nation with a 41.6% annual increase in the number of homes for sale.
The data covers single-family homes, townhouses and condos.
"The increase in inventory is giving buyers more negotiating power," said Madelyn Bearn, an associate director of market analytics for Homes.com and CoStar. "Anecdotally, the increase is in part due to sellers leaving their houses on the market for longer periods because demand is yet to pick up, especially as mortgage rates are still elevated."
The uptick in listings is also playing out in Miami, Houston, Denver and other major markets, giving buyers an upper hand they haven't had since before the pandemic.
Buyers demand concessions
Some sellers are slow to recognize the shift to a buyer's market, said David Canaday, an agent for Watkins Real Estate Associates in the Atlanta area. They tend to gloss over their homes' flaws and don't understand the importance of updating finishes and pricing competitively.
"They're setting themselves up for a longer time on market, lower proceeds and a more painful process," Canaday told Homes.com. "Buyers know what they want, and they're holding out for something that really fits their needs."
Even when a home does go under contract, it's not necessarily time for the seller to relax, Canaday noted.
Contract terminations have become more common in the past year, he said, with buyers backing out of deals if sellers won't work with them on closing costs or other terms.
"Buyers want a lot from sellers, either repairs or concessions in lieu of repairs," he said.
Despite the sluggish market conditions for sellers, multiple offers are still happening, but typically only for homes priced fairly and with modern upgrades, Canaday said.
Atlanta-area townhouses and condos faced the biggest price declines in June, according to Homes.com. Townhouse prices fell 6.5% from a year ago, while condos dropped 6.1% over the same period. Single-family home prices slid 3.2%, Homes.com data shows.
Atlanta's overall 3% home price decline is well below the market's growth rates for the past few Junes and for the nation as a whole, according to Homes.com.