State Real Estate Market Outlook
Realty Market Outlook Georgia State Profile - Spring 2006
Home price appreciation accelerated in 2005
According to the Office of Federal Housing Enterprise Oversight, the house price index for the state rose 6.4 percent in 2005. Median home prices rose by nearly $8,700 last year, which was a record increase and well above the $4,191 average over the last 25 years. Home prices in Hinesville appreciated most rapidly with an increase of $13,500.
Although home price appreciation accelerated in 2005, housing remains comparatively affordable. According to the National Association of Homebuilders-Wells Fargo Housing opportunity index, just 41 percent of homes nationwide are considered affordable for all U.S. households; nearly 76 percent of homes sold in Atlanta, for example, would be considered affordable for a family earning the median income in the metropolitan area.
The pace of home sales is decelerating
In Atlanta, as well as statewide, growth in home sales continued to moderate through the end of 2005, while increases in the inventory of unsold homes edged upward. In January 2006 there was a 2.2 month supply of homes listed for sale. This was relatively unchanged from the prior year, even though the unsold inventory of listed homes increased by 14 percent. The slowing pace of home sales and growing inventory levels suggest that marketing times may lengthen, potentially leading to slower price gains in 2006.
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