The residential real estate market in Atlanta showed continued signs of limited supply and high demand in October, with the number of closed transactions dropping 8.6% from September and active inventory sliding 3.9%, according to the RE/MAX National Housing Report. 

At the same time, the median sales price rose 4.0% to $349,000, and days on market rose 9.1%. 

“Home buyers may see some relief in price appreciation during the coming months, even as sales levels stay high,” RE/MAX LLC President Nick Bailey said in a press release. “Sellers remain in a very strong position, but with price stabilization and the continuation of competitive interest rates, buyers may find the coming months to be more advantageous than anytime earlier this year.” 

Among the 51 metro areas surveyed in October, closed transactions were down 6.4% from September, nearly twice the average pre-pandemic decline of 3.3% between 2015 and 2019. Birmingham, Ala., saw the greatest year-over-year decline in closed deals, with a 32.1% drop to 1,431.  

The median sales price rose 0.8% month over month to $336,000. Year over year, the median price was up 11.8%. Home sellers have enjoyed annual increases in sales prices for 34 consecutive months, RE/MAX said. Boise, Idaho, saw the largest increase in median price, with a 29.6% annual jump to $479,900. 

At the same time, the 12.7% month-over-month decline in active inventory was more than double the average August-September decline of 5.3%. Through October, June and July were the only months in which the national active inventory did not decline on a monthly basis. 

Nationally, October saw one of the lowest month’s supply of inventory, at 1.3, tying with July and August for the second-lowest in the report’s history. Albuquerque had the sharpest annual decline in homes for sale with a 68.4% drop to 0.6. 

Average days on market was 27, up one day from September. The Raleigh-Durham, N.C., market saw the greatest year-over-year drop– in days on market with a 52.8% decline to 17. 

“We’re seeing the effects of a long, sustained run-up in prices and month-over-month home sales, and the market may be moving past the days of immediate sales, multiple offers and bidding wars on virtually every property,” Bailey said. “That’s OK. The October dip in sales, especially after such a busy September, is a step toward a more balanced market and was somewhat overdue.”