Georgia's Housing Market in 2025: Cooling Down, Not Crashing

As of March 2025, the Georgia housing market is experiencing a period of stabilization rather than a recession. While certain metrics indicate a cooling from the rapid growth seen in previous years, the overall outlook remains cautiously optimistic.

Current Market Trends

In metro Atlanta, for instance, home price growth has decelerated significantly over the past three years. This slowdown is largely attributed to elevated mortgage rates, which have dampened demand and tempered price increases. Forecasts suggest that mortgage rates in 2025 will remain elevated, possibly around 6%. If both rates and housing inventory remain unchanged, it's anticipated that home prices will stagnate.

In Central Georgia, the housing market has shown signs of cooling. In January 2025, the average list-to-sale price ratio dropped to 94.6%, down from 95.2% in December 2024 and a significant decline from the 110% peak in November 2024. Additionally, the average days on market increased to 64 days in January, up from 58 days in December 2024 and 56 days in November 2024. These trends suggest that buyers are negotiating more aggressively, and sellers may need to adjust pricing strategies to attract offers.

Expert Forecasts

Experts predict that the housing market in 2025 will be more active, with additional inventory giving buyers more room to negotiate. However, homebuyers should expect some turbulence with fluctuating mortgage rates, even as more homes become available.

Economic Outlook

The broader economic outlook for Georgia remains positive. The state's economy is expected to grow throughout 2025, with job growth projected at 1.0%, outpacing the national average of 0.6%. The likelihood of a recession beginning in 2025 is estimated at about 25%, higher than the one in six chance in an average year but below the one in three chance discussed in previous forecasts.

Conclusion

While the Georgia housing market is experiencing a period of moderation, it is not in a recession. Buyers may find increased opportunities for negotiation, while sellers should be prepared for longer listing times and consider competitive pricing strategies. Staying informed about local market trends and economic indicators will be crucial for both buyers and sellers navigating the Georgia housing market in 2025.