Atlanta Home Prices Hit Record High as Inventory Remains Critically Low

ATLANTA — The median home price in metro Atlanta reached a record $425,000 last month, a 12 percent increase from the same period a year ago, as the number of homes for sale fell to its lowest level in more than two decades.

The inventory crunch — there are currently just 1.2 months of supply on the market — is being driven by homeowners reluctant to sell and give up their low-rate mortgages, a slowdown in new construction, and continued strong demand from buyers.

"We are in a genuine housing crisis," said Atlanta Realtors Association President Karen Hatcher. "There simply are not enough homes for sale to meet demand, and that is pushing prices to levels that are out of reach for many families."

New construction has picked up in recent months, with builders pulling permits for 18,500 single-family homes in the metro area over the past year.