The Atlanta, GA metro area housing market is experiencing a shift as we enter 2025, characterized by a decrease in Median Sales Prices and a notable increase in inventory. The Median Sales Price currently stands at $379,995, reflecting a year-over-year decline of 2.6%. In contrast, the Median List Price has risen by 4.0% to $390,000, indicating a potential gap between seller expectations and buyer willingness.

Price Per Square Foot metrics show a modest increase, with the median Price Per Square Foot at $184.06, up by 1.0% year-over-year. Similarly, the Median List Price per square foot has increased by 2.8% to $197.17. These figures suggest a slight upward pressure on pricing, despite the overall decline in sales prices.

Sales activity has slowed, with 4,396 Homes Sold, marking a 3.3% decrease from the previous year. Pending Sales have seen a more significant drop of 17.6%, totaling 5,910. This decline in Pending Sales could be indicative of buyer hesitation or challenges in closing transactions.

New Listings have decreased by 8.3% to 7,248, while inventory has surged by 15.8% to 20,302. This increase in inventory, coupled with a 70.0% rise in Months of Supply to 4.60, suggests a shift towards a more balanced market, potentially favoring buyers as supply begins to outpace demand.

The Median Days on Market have increased by 20.0% to 68 days, indicating that homes are taking longer to sell. The average sale to list ratio has slightly decreased by 0.3% to 97.6%, and the percentage of Homes Sold above list price has dropped by 3.3% to 16.4%. These metrics further highlight the cooling of the market.

Price Drops have become more common, with 29.4% of listings experiencing reductions, up by 5.6% year-over-year. Additionally, the percentage of homes going off market in two weeks has decreased by 7.6% to 18.3%, suggesting a slower pace of transactions.

Overall, the Atlanta housing market is undergoing a period of adjustment, with increased inventory and longer selling times indicating a shift towards a more balanced environment. Buyers may find more opportunities as sellers adjust to the changing dynamics, while sellers may need to recalibrate pricing strategies to align with current market conditions.