2024: A Year of Shifts, Challenges, + Emerging Optimism (year wrap-up)

This is your full year (January-December 2024) wrap-up. Lets make sense of what happened during the year and figure out where we are headed.
** 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 2024 experienced notable fluctuations, shaped by high inventory levels, low absorption rates, and significant variability in days on market. While the first half of the year was characterized by steady sales and a slight uptick in activity during the spring, the second half revealed a more challenging environment, especially during the summer months. Despite this, the market showed signs of stabilization toward the end of the year, driven by improved buyer activity and decreased inventory levels.

Throughout 2024, the number of condos available for sale hovered consistently between 75 and 97 units, peaking in November. However, sales remained subdued, with monthly closings ranging from 2 to 10 units. The Months of Inventory metric, which reflects how long it would take to sell all available condos at the current pace, fluctuated widely. It started at 13 months in January, dropped to a low of 7.5 months in April, and spiked dramatically to 47.5 months in September, reflecting a significant slowdown in demand. By December, inventory had improved, falling to 8.9 months, signaling a more balanced market as we head into 2025.

One key factor influencing inventory and sales was the impact of new construction developments, particularly The Dillon Buckhead, which absorbed much of the luxury market activity. With only 12 residences remaining out of 144 condos, a sellout is expected soon. However, fewer than 23% of its units were listed in the MLS, indicating that much of the sales activity in the luxury market occurred off-market. If these sales were evenly distributed across the year, they would add an average of 11 additional closings per month, significantly shifting the perception of the market’s strength.

Closed resales combined with the new construction sales indicate a strong market in the luxury sector, priced from $1M+.

The absorption rate, which measures the percentage of listed properties sold each month, mirrored the volatility in inventory and sales activity. It began at a modest 7.7% in January, climbed to its highest point of 13.3% in March, and dropped sharply to just 2.1% in September during the market’s slowest period. The rate rebounded to 11.2% in December, reflecting stronger buyer interest as the year ended.

The average days on market also highlighted the market’s variability. In the first half of the year, condos sold more quickly, averaging 37 to 96 days from March through June. However, during the second half, the market slowed significantly, with August seeing the longest average at 172 days. September showed a surprising turnaround, with condos selling in just 9 days, likely due to there only being two sales. By December, the market stabilized, with properties taking an average of 59 days to sell.

Pricing strategies played a crucial role throughout the year. Properly priced condos sold faster, while those listed above market value lingered longer, further emphasizing the importance of competitive pricing, particularly in a market with high inventory.

External factors and seasonal trends heavily influenced market behavior. For instance, the summer slowdown coincided with buyer hesitancy ahead of the presidential election in November and the typical lull around the holidays. These trends likely contributed to September’s inventory spike, as both buyers and sellers paused activity. Furthermore, fluctuating interest rates throughout the year may have impacted purchasing power, reducing the number of active buyers.

While the $1M+ condo market faced challenges, it is worth noting that other price segments may have experienced different trends. The high-end market’s high inventory and slower sales may not reflect the dynamics of more affordable condo segments. Understanding these differences provides valuable context for buyers and sellers in the luxury market.

The $1M+ condo market in Atlanta in 2024 was clearly a buyer’s market, with high inventory levels and relatively low sales. Seasonal trends, external factors, and the impact of new developments all played significant roles in shaping the year’s dynamics. Late-year improvements in absorption rates, declining inventory, and faster sales offer optimism for a more balanced market in 2025. However, in this market, all data underscores the importance of strategic pricing and careful timing for both buyers and sellers.

All of this data is great information, but you have to look at the entire picture. The luxury segment is alive and well and going strong when considering both resales and new construction.

Where are we headed in 2025?

The $1M+ condo market in Atlanta is showing signs of heading toward a more balanced state in 2025, though challenges remain. Late 2024 trends, such as declining inventory levels (8.9 months by December) and improving absorption rates (11.2%), indicate renewed buyer activity and market stabilization. While sales volumes remained modest throughout the year, the uptick in November and December suggests that momentum may carry into early 2025, particularly as seasonal trends favor increased activity in the spring. However, high inventory levels and lingering properties from slower months mean buyers will continue to hold strong negotiating power in the near term.

As developments like The Dillon near sellout, attention is likely to shift back to resale inventory, creating opportunities for sellers who price competitively. Strategic pricing will remain critical as the market works through excess inventory, particularly for properties that lingered in 2024.

Overall, the market appears to be on a path toward greater balance, with opportunities for both buyers and sellers to capitalize on shifting dynamics in 2025.

Breaking down the data:
For Sale/Sold/Pending

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

Key Insights:

  • For Sale: The number of condos available each month ranged from 75 to 97, with inventory peaking in November.
  • Sold: Sales remained low throughout the year, ranging from 2 to 10 units per month. December saw the highest sales volume (10), while September recorded the lowest (2).
  • Pending: Pending sales hovered between 4 and 9 units monthly, with no consistent trend or improvement.

Overall Analysis: High inventory and limited sales characterized the market throughout 2024, creating opportunities for buyers. Late-year activity, particularly in December, hinted at recovery, but off-market activity from developments like The Dillon likely masked the full extent of the market’s vibrancy.

 Month’s of Inventory

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

Key Insights:

  • January to April: Inventory levels fell steadily from 13 months in January to 7.5 months in April, signaling quicker turnover during the spring.
  • May to September: Inventory rose sharply, peaking at 47.5 months in September, indicating sluggish sales and significant oversupply.
  • October to December: Inventory declined sharply, dropping to 8.9 months in December, reflecting stronger sales activity and reduced listings.

Additional Highlights:

  • September’s inventory spike coincided with both the lowest number of sales (2) and external factors, such as the presidential election and seasonal hesitations from buyers and sellers.
  • The Dillon’s impact on inventory: With only 12 units remaining out of 144 and many sales not recorded in the MLS, The Dillon likely absorbed much of the market’s luxury sales activity, reducing apparent demand in the broader market.

Overall Analysis: The months of inventory metric paints a clear picture of a market that fluctuated between oversupply and periods of balance. The spike in September reflected external and seasonal factors, while the late-year decline pointed to renewed buyer confidence and stronger activity heading into 2025.

Average Days on Market

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

Key Insights:

  • January to March: Condos sold at a steady pace, averaging 71 to 96 days on the market.
  • April to June: The market sped up, with condos selling as quickly as 37 days in May, followed by a slowdown in June to 116 days.
  • July to August: Sales slowed significantly, with August averaging 172 days, the highest for the year.
  • September: Condos sold exceptionally fast, averaging just 9 days, likely due to just two sales.
  • October to December: The market stabilized, with sales averaging 33 to 59 days, reflecting improved buyer activity toward year-end.

Additional Highlights:

  • August’s high average days on market was a reflection of both hesitant buyers and sellers holding out for better deals.

Overall Analysis: The average days on market fluctuated dramatically in 2024, with faster activity during the spring and early fall but significant slowdowns in the summer. Competitive pricing and strong demand during specific months drove rapid sales, while other months highlighted lingering inventory challenges, seasonal shifts and the presidential race.

 
Absorption Rate Based on Closed Sales

This chart displays the Absorption Rate Based on Closed Sales for $1M+ condos from January to December 2024, showing how much of the current active listings (as a percentage) are being absorbed (sold or pending) each month. Absorption Rate is presented as a percentage (%) of the current inventory.

Key Insights:

  • January to March: The absorption rate rose from 7.7% in January to a peak of 13.3% in March, reflecting strong buyer activity in the spring.
  • April to September: The rate declined steadily, hitting a low of 2.1% in September, coinciding with the inventory spike and minimal sales.
  • October to December: Buyer activity rebounded, pushing the absorption rate to 11.2% in December, signaling renewed demand.

Additional Highlights:

  • The decline in absorption from spring to summer indicates a strong seasonal slowdown, potentially influenced by external factors like the upcoming presidential election and holidays.
  • The improved absorption rate in December aligns with stronger sales activity and lower inventory levels, suggesting market stabilization heading into 2025.

Overall Analysis: The absorption rate highlights the market’s volatility, with strong demand early in the year and during the final quarter but significant stagnation during the summer. The recovery in late 2024 suggests improving conditions for sellers after a challenging mid-year period.

** 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. **

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Thank you for visiting my condo blog! I’m thrilled to share my passion for Atlanta’s condo market with you. I prioritize delivering honest and insightful content that reflects my commitment to integrity and transparency. I am dedicated to providing you with comprehensive information, fun stories, beautiful photography and of course, gorgeous properties. While comments are currently turned off, I encourage you to get in touch with me directly. If you have any story ideas, tips to share, or simply want to chat about the market, I’m here to listen and help. Your feedback and suggestions are always welcome, as they help me create content that is both relevant and enjoyable for you. Feel free to reach out anytime. I look forward to connecting with you!