Recent Housing Predictions from Leslie Appleton-Young for Atlanta

We just listened to a Pod Cast by Leslie Appleton-Young, chief economist with First

MLS (FMLS). It was very enlightening on the status of the housing market for the

Atlanta. We decided to share this information with you, compliments of Leslie Appleton-Young and the Atlanta Real Estate Forum Radio podcast as they discussed the predictions for the Atlanta housing market.

Tariffs, fluctuating interest rates and increasing home prices – what does it all mean for the Atlanta housing economy? Leslie Appleton-Young, chief economist with First MLS (FMLS), joined Host Carol Morgan on the Atlanta Real Estate Forum Radio podcast to discuss the current state of the Atlanta housing market.

Pending Sales and Interest Rates

Interest rates are not dropping significantly, leading pending sales to be very sensitive. Appleton-Young mentions that 25% of sales are all-cash transactions made by older generations with higher incomes and established equity in their current homes. This affects first-time homebuyers who want to purchase a home but are limited by student loan debt and past inabilities to save. Mortgages are also expected to remain at 6% this year, putting a damper on affordability and market stability.

On a larger scale the economy is uncertain, but not yet at a crisis level. Consumers

worry about the 10% tariffs; however, they are not “deal-breakers” and are not likely to

send the economy into a spiral alone.

Appleton-Young said, “I think it’s just anticipating. If we were to have these huge tariffs that are kind of put out there and then pulled back, it would be a major dislocation for the economy.”

“Lock-in Effect” on Resale Inventory

Inventory is slightly above pre-pandemic levels, especially in areas with new

construction. Older generations stayed “locked-in” at their current homes to avoid higher interest rates, but now the market has slowed down, and those resale homes are sitting on the market for longer. Earlier this year, resale inventory remained on the market for an average of 12 days. Now, it’s closer to 26 days.

New Construction Homes

“Georgia’s much better positioned because there is a more supportive environment for new construction than you find in other states,” said Appleton-Young. “That’s why, when you look at the national numbers, just take a check back and realize that Georgia is typically doing better.”

The median home price in Georgia is $381,000 and $444,000 in Atlanta. When people

enter the Atlanta housing market from higher-priced states like California, there is often a thought of, “Wow, this is affordable.” For Atlanta natives, that is not the case, and they are forced to rent long-term. Homebuilders are combatting that with enticing rate buy-downs, while many homebuyers have pivoted to  multigenerational housing. With more family members under one roof, everyone can pitch in and connect without leaving home.

“I do think there are listings happening because people are like ‘Enough. I want to

downsize. I want to move to a different state. I want to be closer to my grandchildren. I want to buy that multigenerational house,’” said Appleton-Young.

She anticipates that prices will rise 1% to 3% this year, just not as quickly as years prior.

This slowdown is likely due to increased equity among homeowners.