Homes For Sale in Atlanta Show No Signs of Reducing

It's no secret that across the country, much of the problem with real estate markets is the supply of homes available for sale. This is the simple economic principle of supply and demand. Below is a chart of the Atlanta market dating back to 1994.

Homes for sale in Atlanta have been on a steady increase as has Metro Atlanta's population so an increase in available housing is to be expected. However, this type of increase is not something that the real estate market is capable of absorbing for long periods of time. When underwriting standards constrict combined with difficulties caused by the sub prime mortgage, affordability goes down. This furthers the trend of rising inventories.

Until prices come down, we will continue to see inventories rise. Sellers are sticking to their guns to some degree, but, market forces have begun to push values down in many segments of the market but we still have some distance to go for others. Condos probably have the  largest remaining drop left with 4-5 years of inventory between resales and new construction.

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