Analyzing Housing Market Trends in the Atlanta Metropolitan Area

Abstract

Housing Markets are an important part of economic development as well as consumer affordability. Unfortunately, there is little understanding of what drives local housing market behavior. This study utilizes historical housing market trend data for the Atlanta Metropolitan Area, including the median sale price, total units sold per month/quarter/year, Days On Market (DOM), and new listings. The purpose of this study is to find seasonal patterns in the Atlanta Metro Area housing market, to understand the long-term price growth in the housing market, and to explore the interaction between supply and demand over time.

Multi-Year Data Sets for the Atlanta Metro Area were created and analyzed utilizing Google Sheets. All data used within this study has been separated into two categories: monthly (for Seasonal Trends), and annually (to determine Long-Term Trends). Results from this analysis indicate that the Atlanta Metro Area housing market follows a consistent seasonal cycle, with peak demand occurring throughout spring & early summer months and lessened activity throughout fall & winter months. Long-term trend analysis indicates steady home appreciation, with exceptionally high appreciation rates between 2020-22, followed by steadier appreciations.

The study also found that homes have sold faster in recent timeframes than in previous years indicating stronger competition amongst buyers. Seasonal changes in new listings are a major source of fluctuations in inventory levels and sales activity. Overall, the study found that the Atlanta Metro Area has been affected by seasonal trends resulting in an increase in home prices, as well as increased competition and reduced availability of homes.