We run a report for the state of Georgia, USA, each month and offer our analysis of what might be happening in the residential real estate world.
Let's dive in. Charts are created from GAMLS data by 
Homes are selling like hot dogs at the ball park! You hungry? Average days on market, that's from listing date to under contract is 32 days. That's half the time from two years ago!
So in 2022, Everybody Is Buying! But nobody is selling.
Check out the current inventory below. The number of active homes for sale is down 11% from a year ago and 50% from two years ago. I will say that again, inventory is down 50% from two years ago! Do you know what that means?
Higher Prices!
Just like at the baseball game, those hot dogs are expensive, but you got to eat and there's no other choices, right? A 50% decline in inventory translates to higher prices. Don't believe it? Check out the chart below. Georgia homes are nearly 30% higher on average than 12 months ago. How many people have an extra $100 grand laying around to cover that jump in price? Well, not as many as before.
Fewer Buyers when prices rise
How do we know people are starting to back out of the market due to high prices? Look at the pending sales below. The number of sales to be closed (under contract) is dropping like a rock, and has been dropping since May of last year.
One more chart to make the point that sales are declining, even as prices continue to push to the sky. See below and check out the number of closed/sold units. 7 out of the last 8 months sales have declined compared to the same month last year. We ain't moving as many houses as we used to in this market!
So why aren't prices coming down?
It's that supply chain problem. Not the one that's a slow boat from the Orient, but the one that says not enough people are selling. New listings continue to be flat. See chart below.
People who own a home don't want to sell it because they can't find another great home at a decent price. Shouldn't new home construction give us more supply? It should, but windows are on 6 month back order, plywood is $40 a sheet and no one can seem to find home thermostats. Half built houses are strewn across the landscape.
So is there a method to the madness?
Sure the numbers don't lie. As long as supply is below demand, prices will increase. We are hitting the point of stabilization since demand is cooling. Any push up in supply, and we might see a decline in prices, but that's not happening in the next 30 days.
Feel free to leave a comment, ask a question. We do these reports every month. Here's last month, if you missed it @methodofmad/what-happened-in-real-estate-in-january-2022-hive-140905
Real estate is my day job, but Hive is my passion, that's why I am part of HiveFive. Who is HiveFive?
A group of friends that is creating fun and new things for the Hive Community. Want to see what else we do join our HiveFive Community.
Also, thanks for reading until the end of the post.
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