The Georgia housing market in February 2025 presents a complex landscape, characterized by rising prices and declining sales activity. The Median Sales Price for homes in Georgia reached $367,000, marking a 2.2% increase year-over-year (YoY). Similarly, the Median List Price rose by 4.7% YoY to $393,300, indicating a continued upward trend in home valuations.

Despite the increase in prices, the market is experiencing a notable slowdown in sales activity. The number of Homes Sold in February was 8,186, reflecting a significant 12.1% decrease YoY. Pending Sales also declined by 15.7% YoY, totaling 10,739. This downturn in sales is further emphasized by the 7.6% YoY decrease in New Listings, which amounted to 12,876.

Inventory levels, however, have surged, with a 15.8% YoY increase, bringing the total inventory to 35,239 homes. This rise in inventory is accompanied by a dramatic 100% YoY increase in the Months of Supply, now standing at 4.3 months. Such an increase suggests a shift towards a more balanced market, potentially easing the pressure on buyers.

The median Price Per Square Foot for Homes Sold was $186, a modest 1.0% increase YoY, while the Median List Price per square foot rose by 2.9% YoY to $200. These figures indicate a steady appreciation in property values, albeit at a slower pace compared to overall list prices.

Market dynamics reveal a longer selling process, with the Median Days on Market extending to 70 days, a 19.0% increase YoY. The average sale to list ratio slightly decreased by 0.4% YoY to 97.7%, suggesting that sellers are receiving offers closer to their asking prices, but with less frequency. The percentage of Homes Sold above list price dropped by 2.9% YoY to 17.5%, further highlighting the cooling market conditions.

Price reductions have become more common, with 27.3% of listings experiencing Price Drops, a 4.9% increase YoY. Additionally, the percentage of homes going off the market within two weeks decreased by 5.8% YoY to 25.4%, indicating a slower pace of transactions.

Overall, the Georgia housing market in February 2025 is characterized by rising home prices amidst declining sales and increased inventory. This environment suggests a potential shift towards a more balanced market, offering opportunities for buyers and challenges for sellers navigating the evolving landscape.