ATLANTA — Home prices are falling all over metro Atlanta; however, a lot of families still cannot find an affordable property.
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For years, Jahmel Terrell has been on the hunt for a house.
“It would mean success,” Terrell told Channel 2’s Michael Doudna. “It would mean that I delivered on my parents’ and grandparents’ hard work.”
However, for the past few years, Terrell dealt with skyrocketing prices, delaying a dream.
“This dream will sort of allude you, it’s like a dream deferred,” Terrell said.
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New data shows potential relief for some buyers.
According to a Redfin report, in metro Atlanta, prices dropped 3.2% year over year, the fourth biggest drop in the country.
In the city of Atlanta, the numbers are even larger, with Redfin finding a drop of more than 8%.
“Well, this market is certainly not my market, and I’m a buyer,” Terrell said.
Despite the drop, there is still an affordability gap.
“Buyers are having a difficult time because average median income and the price of the home on a traditional purchase is not going to work,” Maja Sly, an affordable housing advocate and real estate broker, said.
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In April, the Atlanta Fed found that the median home price was more than $390,000. The Fed says to reasonably afford that home, the average household would need to make more than $120,000 a year.
The metro’s actual median income? It is a little less than $90,000.
“We’re in a real neutral market. People think it’s a buyer’s market because of the amount of inventory, but buyers pull the trigger based on consumer confidence and payment,” Sly said.
Sly says in a market like this, potential buyers can get creative as a way to lower payments and make homes more affordable. She says finding ways to buy down rates may be better for many buyers than a reduction in price.
“Now, every $10,000 that price drops is only gonna save you about $60 in payment. Is that really gonna make a difference?” Sly said.
She also says there are programs, like downpayment assistance, that can help potential buyers.