Big decline for Atlanta home prices, according to Redfin's latest report
ATLANTA - A new report from Redfin shows that home prices in metro Atlanta have dropped 3.2% year over year — the fourth-largest decline among major U.S. metros.
The drop was even steeper in the city of Atlanta itself, where prices fell by more than 8%, according to the report.
What we know:
Despite the decline, affordability remains a major concern. The Federal Reserve Bank of Atlanta reports that the median home price in the region is now $390,000. To afford a home at that price, a household would need to earn roughly $120,000 a year.
Redfin also recently reported that 19.6% of home-purchase agreements were canceled in June--the third highest cancellation rate among major U.S. metros. The national average is 14.9%.
What they're saying:
Redfin says all the metros with the highest cancellations are in the Sun Belt. The cancellation rates are due in part to an abundance of new construction which gives buyers more inventory to choose from. However, some buyers are backing out due to sky-high insurance quotes related to the increasing frequency of natural disasters.
Currently, the median income in metro Atlanta is under $90,000, highlighting a significant gap between home prices and what most residents can afford.