October 5, 2023

Southeast Cross Market Insights Report - September 2023

October 5, 2023
Southeast Cross Market Insights Report - September 2023

We are pleased to release our latest Southeast Cross Market Insights Report covering Atlanta, Birmingham and Charlotte for September 2023. Here is a high level overview of the findings for those markets.

In summary, active listing growth outpaced the volume of new listings and closings in Atlanta and Birmingham last month - indicating that properties are staying on the market for longer. While average purchase prices in all three markets had been rising steadily since Q1 2023, sale prices declined last month. STOLs across all three markets declined to 98% - the first month-over-month decline since early Q1 2023. While purchase prices on a p.s.f. basis had posted a V-shaped recovery since the start of the year, they saw a decline last month while list prices remained unchanged. With 20-year high mortgage rates and near all-time high sale pricing, median income households have become increasingly priced out of the market, particularly in Birmingham and Charlotte.

Atlanta Listing Activity - After declining for seven consecutive months, active listings started to rise in April. Closings and new listings have seen an increase YTD, following a similar trajectory.

Birmingham Listing Activity - Since May, Birmingham has witnessed a surge in active listings. Although new listings showed steady progress YTD, there has been a noticeable decline over the past two months. Closings have remained relatively flat over the same time period.

Charlotte Listing Activity - Since August of 2022, active listings in Charlotte have steadily declined. However, both active listings and closings saw a noticeable increase last month.

Absorption Rate Comparison

Average STOL% for Active Listings - After recovering in Q1 and Q2 of 2023, STOLs dropped last month

Atlanta Purchase / List Price Per Square Foot - After seeing gains in average sale price p.s.f. since January, average purchase prices decreased last month. However, average lists prices p.s.f have remained relatively flat over the past three months

Birmingham Purchase / List Price Per Square Foot - On a $p.s.f. basis, Birmingham posted record highs for both sale and list price in June, but this has since come down

Charlotte Purchase / List Price Per Square Foot - Since the January trough, sale prices had been steadily increasing while list prices p.s.f remained flat. Last month, however, sales prices p.s.f. declined, causing list and sale prices to diverge

Retail Affordability - The disparity between affordable housing and current market pricing is most pronounced in Charlotte. Despite median wages standing at $75,000 per year, home prices continue to average over $370,000

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