Second Half Of 2024 Continues High Inventory, Big Opportunities ($1M+)

Lets take a look at the second part of the year (July-December 2024) to take note of any trends happening.

** Link to Market Metrics page at the bottom of this post. **

All data is for condos priced above $1M
(High-Rise, Mid-Rise + Lofts, no town homes are included)

The $1M+ condo market in Atlanta during the second half of 2024 was marked by high inventory levels and slow sales, creating a strong buyer’s market. Each month, there were between 84 and 97 condos for sale, with November reaching the highest inventory of the period. However, actual sales remained low, ranging from just 2 to 10 units sold per month, with December seeing a slight improvement in activity. Pending sales (contracts signed but not yet closed) were modest, fluctuating between 4 and 9 units monthly, peaking in September. Despite some signs of increased buyer interest late in the year, inventory consistently outpaced demand, keeping buyers in a favorable negotiating position.

The “Months of Inventory” metric, which indicates how long it would take to sell all available condos at the current sales pace, fluctuated significantly. Inventory was already high in July and August, at 21 and 23 months, but spiked dramatically in September to 47.5 months—a clear indicator of a sluggish market. September’s sluggishness, however, may have been compounded by external factors beyond typical market dynamics. With a presidential election looming in November and the holiday season approaching, both buyers and sellers often hesitate to engage in the market, delaying decisions until the new year. These trends likely contributed to the inventory buildup in September and slower sales activity in the months leading up to December. By October inventory began to improve, dropping to 11.3 months and declining further to 8.9 months by December. These lower levels signaled a faster pace of sales in the final quarter, which was more balanced but still leaned toward buyers due to the overall supply remaining relatively high.

The average days on market revealed further insights into the unpredictability of the $1M+ condo market during this period. In July, condos sold in a reasonable 53 days on average, but August saw a dramatic slowdown, with properties taking 172 days to sell. Septembers dramatic reversal, with condos selling in just 9 days on average, is likely just due to the fact there were only 2 sales that month. October brought another slowdown, with properties taking 87 days on average to sell, but November showed improvement, with condos selling in 33 days on average. The year closed in December with properties selling in 59 days, signaling a steadier market heading into 2025.

Overall, the $1M+ condo market in Atlanta during the latter half of 2024 highlighted opportunities and challenges for both buyers and sellers. Buyers had ample inventory to choose from, particularly during the summer and early fall, and enjoyed a strong position to negotiate. For sellers, the market required patience and competitive pricing, especially during slower months like August and October. However, the final months of the year offered some encouragement, with faster sales and slightly increased activity in November and December, hinting at a potential shift toward a more balanced market in the months ahead.

The information does not take into account properties not listed in FMLS. So new construction condos like The Dillon Buckhead are enjoying sales at a rapid pace. They don’t list all of their inventory in the MLS, so we can’t include that information. Let’s look at what would happen if those new construction sales were added to our resale inventory sales.

A major factor influencing the $1M+ condo market is The Dillon, which is absorbing much of the luxury sales activity. With only 12 residences remaining out of 144 condos, a complete sellout is expected in the coming months. Out of the 132 residences that have closed or are set to close, fewer than 23% have been listed in the MLS, with only 30 total MLS listings (7 active, 7 pending, and 15 closed). Spread over 12 months, those 132 sales equate to an average of 11 additional sales per month, which aligns closely with the hypothetical increase. This suggests The Dillon is driving much of the market activity, adding a hidden layer of vibrancy not fully reflected in MLS data. Keep in mind that some of those sales are entered into the MLS.

Hypothetically if the $1M+ condo market saw 11 additional sales each month from July to December 2024, it would transform from a sluggish, buyer-dominated market to a much more active and balanced one. Increased sales would significantly reduce inventory levels and shorten the time properties remain on the market, making it easier for sellers to close deals. For instance, September’s months of inventory could drop from 47.5 months to under 20, and December’s inventory might fall below 5 months, signaling a healthier market dynamic. This boost in activity would also create more competition among buyers, reducing their negotiating power, while sellers would benefit from faster turnover and better leverage. This scenario suggests a market trending toward recovery or growth, with improved conditions for sellers while still offering opportunities for motivated buyers.

For Sale/Sold/Pending

This chart displays the real estate activity for $1M+ condos from July to December 2024, breaking down the number of homes for sale, sold, and pended (under contract) each month.

• The number of condos available for sale remains consistently high, ranging from 84 to 97 throughout the six-month period.
• The highest inventory was in November (97), while the lowest was in July (84).
• The number of condos sold each month remains very low, ranging from 2 to 10.
• The highest sales occurred in December (10), while the lowest was in September (2).
• Pending sales, representing contracts signed but not yet closed, range from 4 to 9.
• Pending sales peaked in September (9) and saw steady activity around 4 to 8 in other months.

The chart indicates a high inventory and low sales environment, pointing to a strong buyer’s market for $1M+ resale condos. While inventory stayed consistently high, sales struggled to gain traction. December saw a slight uptick in sales and pending contracts, possibly due to end-of-year activity, motivated buyers taking advantage of favorable conditions or the election/holidays were over.

 Month’s of Inventory

This chart shows the “Months of Inventory Based on Closed Sales” for $1M+ condos from July to December 2024, which indicates how long it would take to sell all available inventory at the current sales pace.

• July and August (21-23 months): Inventory levels are high, with over 21 months of supply in July and 23 months in August. This signals a slow market with more condos available than active buyers.
• September (47.5 months): The inventory spikes dramatically, reaching 47.5 months. This is the peak of the period and suggests a significant slowdown in sales or an increase in inventory. Possibly due to the looming election and holiday season.
• October to December (Declining Inventory): Inventory drops sharply to 11.3 months in October, 10.8 months in November, and 8.9 months in December. These levels reflect a faster turnover, potentially due to increased buyer activity or fewer condos being listed.

The data reveals a slow start to the market in the summer, with inventory peaking in September. However, the significant decline in October through December suggests improved market conditions, making it more balanced for sellers. By December, the inventory level of 8.9 months indicates a more active market, though still favoring buyers compared to the earlier months.

Average Days on Market

This chart displays the Average Days on Market for $1M+ condos from July to December 2024, showing how long properties took to sell during this period.

• July (53 days): Condos sold relatively quickly, averaging 53 days on the market.
• August (172 days): A sharp increase in time on market suggests a significant slowdown in sales, with condos taking an average of 172 days to sell.
• September (9 days): This month saw a dramatic drop, with condos selling exceptionally fast in just 9 days on average, likely due to only 2 closed sales this month.
• October (87 days): Sales slowed again, with condos taking an average of 87 days on the market.
• November (33 days): The market picked up, with properties selling in just over a month on average.
• December (59 days): The year ended with condos taking slightly longer to sell, averaging 59 days on the market.

The chart highlights an erratic market for $1M+ condos, with extreme fluctuations in the average time to sell. While August and October were slow months, September and November saw much faster sales activity. This volatility suggests inconsistent buyer demand, possibly influenced by seasonal trends or shifts in market conditions, again including an election and holiday season.

For July-December, 2024 for condos priced above $1M listed in FMLS (First Multiple Listing Service):

• 110 Active Listings ranging from $1,007,500 up to $11,900,000
• 41 Pending Sales ranging from $1,000,000 up to $3,375,000
• 39 Sold properties ranging from $1,000,000 up to $4,550,000

** These results do not include any inventory under contract or active which a developer has not listed in the MLS. Also, it does not include any town home units. **