Why Home Sales Are Down While Buyers Remain Motivated

Georgia home sales

Regardless of whether the housing market is favoring buyers or sellers, sales are more often than not driven by interest rates, the economy and government subsidies. Right now, we’re looking at relatively good interest rates for buyers, an economy that is growing steadily if not rapidly and favorable lending regulations from the state government. And yet, we aren’t seeing an increase in home sales. If fact, it’s the opposite.

Through the end of the summer and now into the early part of the fall season, sales are down. But why? At The Premier Group Real Estate Firm, we decided to look into the lackluster home sales of late in the Atlanta Metro area to see if we could figure out why things have been so slow in what should be a favorable market.

Too Few Houses?

Could a lack of homes being put on the market really be the culprit? It seems like it may be. Inventory has only declined marginally since this time last year from a national average perspective. However, the South as a whole is below the national average and it doesn’t seem like we’ve been spared here in Woodstock. So it could stand to reason that a decrease in available homes, and hence an increase in pricing, could be the problem.

Buyers Are Motived but Sales Are Down…

The market does not seem to be suffering from a lack of interested buyers at the moment. But for some reason, sales are down. One reason could be attributed to a 5.6 percent increase in median home prices since last year. According to an article put out by the National Association of Realtors, the average home price was $253,500 in August. Match this with stagnant wage increases nationwide and it could explain why a seemingly healthy pool of motivated buyers aren’t biting. Or maybe it’s what’s keeping them from listing their current homes in the first place.

Regardless, things do seem to be favorable for an increase in sales. Watch for prices to fluctuate and potentially drop. This could be a good sign that sales are on their way to picking back up again! If you’re curious to hear more or want to look at some of our current listings, make sure to contact us at TPG today.