Are Home Prices Dropping in Georgia?

Georgia’s housing market often captures significant public interest, with many wondering about the direction of home prices. Understanding whether prices are currently dropping in the state involves examining various market indicators. Real estate markets are dynamic, influenced by numerous economic factors and local conditions that can lead to diverse trends across different areas. This overview provides insights into the current state of home prices in Georgia.

Current Trends in Georgia Home Prices

Georgia’s housing market has shown a period of stabilizing prices and softening demand as of mid-2025. The median home price statewide was approximately $382,500 in July 2025, reflecting a modest 0.9% increase year-over-year. Despite some reports of an 11% drop from April 2024 to April 2025, the overall trend appears to be towards stabilization or slight appreciation. The average home value across Georgia was around $335,700 in Q2 2025, marking a 1% increase over the past year.

Inventory levels have seen a notable increase, with active listings across the state growing by approximately 12.5% year-over-year in July 2025, reaching over 60,000 homes for sale. The average time a home spends on the market has also lengthened. In July 2025, the median days on market reached 53 days, which is 14 days longer than the previous year. This extended period suggests that buyers have more time for decision-making and negotiation compared to the rapid pace of earlier years.

Factors Influencing Georgia’s Real Estate Market

Mortgage interest rates play a significant role, with 30-year fixed rates hovering around 6.63% to 7.00% as of August 2025. These elevated rates can impact affordability, potentially reducing purchasing power for some buyers and influencing overall demand. Experts anticipate rates may remain within the 6% to 7% range for the remainder of the year.

Inventory levels continue to influence market conditions. Despite recent increases in available homes, supply may still be tight in some areas. New construction activity is contributing to the housing supply, with builders actively bringing more move-in-ready homes to the market. This expansion of new builds helps alleviate some previous supply shortages.

Broader economic conditions in Georgia, including a strong job market and consistent population growth, underpin demand for housing. The state saw over 116,000 new residents arrive between July 2023 and July 2024, driven by robust employment opportunities. Georgia’s sustained ranking as a top state for business further supports economic stability. The relatively affordable cost of living in Georgia, compared to some other regions, also continues to attract new residents and maintain housing demand.

Geographic Variations in Georgia’s Housing Market

While statewide trends offer a general overview, Georgia’s diverse geography leads to variations in local housing markets. Major metropolitan areas often exhibit different dynamics compared to smaller cities or rural communities. For instance, Metro Atlanta has seen a shift towards a buyer’s market, characterized by more homes experiencing price reductions and fewer selling above their initial list price. Active listings in Metro Atlanta increased by 34% year-over-year as of June 2025.

In contrast, some other Georgia cities have experienced continued appreciation. Macon, for example, saw its median home price increase by 24.6% year-over-year to $195,000 as of February 2025, though homes there are spending more time on the market. Savannah and Athens are projected to see home prices climb by an estimated 3% through late summer 2025. Augusta’s market showed an average home value of approximately $173,219 in August 2025, with homes going under contract relatively quickly, indicating a more active pace for that specific area.

These regional differences stem from varying local job markets, population shifts, and the scale of new development projects. Local supply and demand dynamics also contribute to the diverse pricing and sales trends observed across Georgia. While some suburban areas may experience slower appreciation or more balanced conditions, certain coastal or developing markets might continue to see steady growth due to sustained demand.