Atlanta-area residential real estate market sees shift in buyer priorities
While residential real estate professionals are seeing a shift in the Atlanta area market with the type of buyers and their lifestyle priorities, they remain optimistic about the forecast for the remainder of 2025.
Lindsay Levin, a Realtor with Berkshire Hathaway Home Services Georgia
Properties, said she has seen steady volume so far in 2025, but the makeup of her
clients has shifted.
“In the past, I worked more with move-up buyers — families wanting more space or newer homes,” Levin said. “This spring, I’m seeing a noticeable increase in downsizers and empty nesters, as well as families managing estate sales.”
Levin’s mantra that real estate is “driven by diamonds, diapers, divorce,
debt, downsize, and death,” is seeing more business in the categories of downsizing
and death.
“It’s a reminder that real estate is deeply tied to life transitions, and as a senior and
luxury real estate specialist, I feel grateful to be able to guide people through those
moments with care and expertise,” she said.
Jane Cross, an associate broker with Ansley Real Estate Christie’s International,
said she feels that buyers who have been hesitant to enter the market because of
higher interest rates are coming to terms with current levels, “recognizing them as
the new normal.”
“With housing prices continuing to trend upward, many are choosing to move
forward with their purchases,” she said.
Cross said where she is seeing some out-of-state buyers, the numbers aren’t as
high as in previous years, with the most activity coming from local buyers looking
to upgrade from their current living situations.
Real Estate Advisor Ashley Battleson with Atlanta Fine Homes Sotheby’s
International Realty said she has seen “a real shift in Atlanta’s real estate market
during the first half of 2025.”
“Inventory has grown sharply up – nearly 50 percent year-over-year in some
months, so buyers have many more options than they did last year,” Battleson
said. “At the same time, home sales have dipped about five percent, and homes are
taking a bit longer to sell.”
Prices, however, are holding steady, with the median home price around $425,000, up a little more than one percent from last year, she said.
One shift Battleson said she is seeing is regarding negotiations.
“More than 60 percent of sellers are now offering concessions, such as help with closing costs or repairs to get deals done,” she said. “That’s a big contrast and
a welcome change for buyers from the pandemic years, when concessions were
almost unheard of and sellers had all the leverage.”
Realtor Robin Blass with Harry Norman Realtors said she is also seeing a “notable shift in the Atlanta real estate market during the first half of the year.”
While more homes are coming on the market, fewer are going under contract compared to this time last year, Blass said. “In fact, there are approximately 20 percent fewer homes under contract, which is a significant decline – especially for a traditionally active spring market.”
Blass cautioned, however, that individual neighborhoods may tell a different story.
“For example, in Dunwoody, inventory is up 24.4 percent, but pending sales have dropped 28.7 percent, and closed sales are down nearly 32 percent for the year so far,” Blass said. “However, there are signs of momentum returning. When we compare April to May, Dunwoody shows a 30-percent increase in sold homes, suggesting that buyer activity may be picking up again.”
All the responding real estate professionals said that economic uncertainty and concern about interest rates, while certainly causing some hesitation in certain segments of buyers, is not drastically affecting the housing market thus far.
“Interest rates are the main factor behind the slowdown. Buyers are focused on value right now,” Levin said. “They are hesitant because they don’t know when rates will drop or if they’ll have a good opportunity to refinance in the near
future.
“On the bright side, lenders are creative with rate buy-downs and other incentive programs to help ease the monthly payment burden and keep buyers engaged,” she continued.
Cross said that in times of economic uncertainty, many buyers and investors gravitate toward more stable, tangible assets, but they realize that real estate investment is very different compared to putting money into the stock market.
“Real estate offers a sense of security,” Cross said. “It’s a physical asset – something people can improve, live in, rent out, or hold onto for long-term appreciation.”
Blass agrees that real estate has historically proven to be a solid and resilient investment.
“Even in times of uncertainty, it offers tangible value and the potential for long term growth—making it one of the most reliable ways to build and protect wealth,” Blass said.
The real estate professionals offered a measured optimism regarding the remainder of 2025.
“The Atlanta market is stabilizing with the average days to sell a home being 40+, more in line with pre-2020 norms,” Levin said. “In a balanced market, it’s more
important than ever for sellers to maximize their home’s exposure by listing on the
MLS. Without full market exposure, it’s hard to generate strong competition, and
sellers could be leaving money on the table by not tapping into buyers who may be
willing to pay more for the right home.”
Battleson said she anticipates a stronger and more active market for the remainder of 2025, especially if mortgage rates stabilize.
“Forecasts suggest rates could fall closer to 6 percent by year-end, which would likely spur renewed buyer activity and encourage more homeowners to list their properties,” she said. “Atlanta’s economic fundamentals remain robust, with projected job growth of two percent and over 56,000 new jobs this year, supporting continued housing demand.”
Cross said homes that are competitively priced and presented in excellent condition
will continue to perform well during 2025.
“Today’s buyers are drawn to turnkey properties – homes that are professionally
staged, beautifully photographed, and move-in ready,” Cross said. “When a home looks polished and thoughtfully prepared, buyers can easily envision themselves stepping into a seamless, comfortable lifestyle, which makes a strong impression and drives interest.”
While, as expected, homes in Buckhead continue to attract the attention of potential buyers, other neighborhoods that offer walkability and lifestyle considerations are becoming popular options.
“Westside Atlanta has become especially popular, particularly among younger
buyers,” Blass said. “This area is seeing a wave of new residential developments with
more attainable price points compared to other intown neighborhoods. What makes it even more attractive is the rapid growth of supporting retail, dining, and shopping options that create a vibrant, urban lifestyle.”
Cross said buyers are increasingly prioritizing a strong sense of community
and access to top-rated school districts, factors that have historically played a key
role in home-buying decisions.
“We’re also seeing a renewed focus on commute times, as more people transition
back to in-person work,” Cross said. “These lifestyle considerations are standing
out as major influences in buyers’ final decisions.”
Buckhead remains a perennial favorite, especially for luxury buyers and investors,
thanks to its blend of upscale amenities, top schools, and proximity to business
districts, Battleson said.
“I sold out a neighborhood of 32 new construction cluster homes called Chastain
East of Roswell Road between 2017 and 2020, with prices hovering around the
$1.1 million mark,” she said. “In the past two years, I’ve resold many of those same
homes for hundreds of thousands more – typically $500,000 to $700,000 above
their original prices.”
Battleson said while there’s a bit more caution out there, real estate’s stability
and hands-on nature “are keeping buyers engaged and optimistic about Atlanta’s future.”
The post Atlanta-area residential real estate market sees shift in buyer priorities appeared first on Rough Draft Atlanta.