Mortgage Rates: Softer, But Still Elevated
Realtor.com’s midyear forecast projects an average mortgage rate of 6.7% for 2025, dipping to 6.4% by year’s end. While that is a slight improvement, it is not the dramatic drop many buyers and sellers were hoping for.
Nationally, home sales are projected to fall 1.5% this year, hitting the lowest level since 1995. For the third year in a row, sales have hovered at 30-year lows. Even the homeownership rate slipped in Q2 2025, down to 65%, its lowest point since 2019.
Inventory is Up, But Buyers Are Hesitant
Here in Atlanta, inventory is surging. Nationally, listings are up nearly 25%, but Greater Atlanta is seeing a 30.7% increase in homes for sale.
So what is surprising? More homes on the market has not translated into more sales or lower prices. Buyers remain cautious, and affordability challenges are keeping demand muted.
Redfin data highlights the imbalance:
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Nationally, there are 1.9 million active sellers versus 1.5 million buyers, a 34% shortfall
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In metro Atlanta, the gap is even wider, with 63% more sellers than buyers
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61% of Atlanta sellers have offered concessions this year, compared to 44% nationwide
The Balance of Power is Shifting
This is not quite a buyer’s market, but there is no question buyers have more negotiating power today than in recent years. Sellers are more willing to drop prices or add concessions, especially in competitive price points.
At the same time, home prices are holding relatively steady. Sellers may not be getting their dream number, but they are not facing steep discounts either.
The New Normal
Since rates rose in 2022, the housing market has entered a new era. Sales are down 20 to 25% from what used to be considered “normal” levels. Prices are stable. Activity is slower. Both buyers and sellers are being asked to adjust their expectations.
For sellers, success comes down to pricing accurately, staging attractively, and marketing aggressively. For buyers, it is about having a clear strategy, being financially prepared, and staying ready to act when the right home appears or when rates improve.
Bottom Line
The Atlanta real estate market is no longer about waiting for the big shift. Instead, it is about navigating today’s conditions with smart strategy and local expertise. Whether you are buying or selling, preparation—not wishful thinking—is the key.
