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

This is your mid-year (July-December 2024) wrap-up. Lets make sense of what happened during the year and figure out where we are headed.

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

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.