Sharply increasing interest rates have created downward pressure on the real estate market nationwide during the 3rd-quarter of 2022. The Buckhead real estate market is certainly not immune to these market forces, but the impact so far has been somewhat mixed. Anecdotally, the number of buyers looking at homes has decreased substantially, but prices have so far remained strong thanks to the upper end of the market remaining resilient, along with limited inventory.
The high-end of the market more often involves cash purchases, making interest rates less of a consideration. Of the top 10 home sales in Buckhead during the 3rd quarter of 2022 (shown on the facing page), only two involved a mortgage and the other eight were paid for in cash. Higher interest rates will still likely impact this market segment through a “trickle-up” effect that has already begin at the lower end of the market.
Buckhead Home Sale Statistics (Q3 2022 vs Q3 2021)
The sales data, that I compiled to compare the third quarter of this year to the same period last year, appears at first glance to be very contradictory. It shows year-over-year price gains of 9% for single family homes, even as the number of sales substantially declined by a whopping 37%. Buckhead condo and townhome sales saw the same decline in sales volume, coupled with a more moderate increase in the average sale price.
One explanation for this phenomenon is simply that the under-$1.5 million price range had a higher rate of reduction in total homes sold (down 41%) than more expensive homes. This makes a good portion of the increase in average sale price attributable to the high-end of the market being less dependent on financing. The market tends to follow predictable patterns and it appears that the next year will be a reset to more sustainable supply and demand trends.
|3rd Quarter 2021||3rd Quarter 2022|
|Single family homes||Total Sold||341||214|
|Average sale price||$1,428,561||$1,569,748|
|Average days on market||45||42|
|Condo/ Townhomes||Total sold||540||380|
|Average days on market||45||45|
Buckhead’s Top 10 Home Sales for Q3 2022
It is always a pleasure to see the variety, architecture, and design of the top ten home sales in Buckhead. Once again, I had the honor of selling more of the top 10 homes than any other broker! The list below does not include an off-market sale of a new home at 3115 Nancy Creek Road. This home sold for $6,228,300 and was built by Siegel Construction and Design. Click on any of the homes below to see more!