2025 Metro Atlanta Housing Market Prediction

Happy New Year from Callison Realty!

As we kick off 2025, we find ourselves in a market defined by uncertainty and evolving dynamics. While it’s too early to judge the accuracy of the year’s market forecasts, one thing remains clear: predicting mortgage rates continues to be a high-risk endeavor.

Looking back, September 2024 saw the Federal Reserve implementing a 50-basis-point rate cut, which pushed mortgage rates down to 6% by month’s end. Many anticipated further cuts, but here we are with rates hovering around 7%, and no additional rate cuts expected until mid-year—if they happen at all.

What Happened?

A few key factors have shaped this landscape:

• Inflation Stalls: While prices initially showed signs of declining, they’ve now plateaued, and concerns about new tariffs and their economic impact are rising.
• Government Borrowing and Debt: Worries about debt sustainability and its influence on the economy remain front and center.
• Labor Market Surprises: December saw a surprisingly strong gain of 256,000 new jobs, which fueled investor concerns that a robust economy might lead to higher inflation, derailing the Fed’s plan to lower rates.

Economic forecasts suggest inflation will be controlled, the economy will grow at a slower pace, and rates could gradually decline as the year progresses. However, if 6.5% or 7% mortgage rates become the “new normal,” how will this impact the housing market?

A Snapshot of Market Activity

Market data from early January gives us a glimpse of what’s ahead. After a holiday-affected slowdown, new listings for the week ending January 11th rose by 6.75%, returning to typical seasonal levels. Similarly, closings surged 61% during the same week compared to prior weeks impacted by holiday travel. While activity remains below pre-pandemic levels, these numbers reflect a gradual return to a more balanced market.

Key Takeaways for Buyers and Sellers

For Buyers: Waiting for mortgage rates to drop to 5.5% or even 6% may not be realistic in 2025. Instead, evaluate your local market and compare mortgage rates with price appreciation. In many cases, it makes more sense to act sooner rather than later.

For Sellers: Price competitively. Higher rates make buyers more sensitive to pricing. Consider offering mortgage rate buy-downs as an incentive to attract buyers.

The Bigger Picture

While uncertainties remain, there’s undeniable pent-up demand in today’s market. Buyers sidelined by rising rates over the past two years are eager to reenter, and sellers who locked in low mortgage rates now have substantial equity gains. As expectations adjust, we anticipate increased market activity.

At Callison Realty, we’re here to guide you through these market conditions with expertise and care. Whether you’re buying or selling in the north metro Atlanta area, including Dallas, GA, let’s work together to achieve your goals in 2025. Contact us online or by phone today to discuss.