As Q1 of 2025 comes to a close, it’s clear that Georgia’s real estate market is keeping us all on our toes—offering a mix of stability, surprise trends, and solid growth across key areas of the state. Whether you’re buying, selling, or just keeping an eye on where things are heading, this update will give you the full picture of what’s been happening so far this year and what we expect moving forward.
Let’s break it down.
📈 Home Values: Still Climbing (Just Not as Fast)
The average home value in Georgia has inched up to $326,316, marking a 1% increase over the past year (Zillow). While that growth isn’t as explosive as previous years, it signals a more balanced market—especially welcome news for buyers who’ve felt the heat the past few years.
🏙️ Spotlight on the Cities: Atlanta, Savannah & Beyond
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Metro Atlanta continues to be a top market, with a median sale price of $320,500 in January 2025. Homes here are going under contract in about 46 days, showing a steady pace of activity (Zillow).
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Cities like Savannah, Athens, and Gainesville are projected to see home price increases of about 3% by August, signaling consistent demand and good opportunities for appreciation in these midsize markets (RealWealth).
📦 Inventory & Sales: More Homes, More Movement
We’re seeing an encouraging trend: inventory is up 7.2% year-over-year, giving buyers more choices after years of tight supply. In January alone, 9,761 homes sold statewide, up from 9,130 in January 2024—a 7.1% increase in sales activity (Houzeo).
Sellers, take note: homes are moving again, especially if priced right.
💸 Mortgage Rates & Affordability: A Mixed Bag
Mortgage rates have finally stabilized around 6%, bringing some much-needed relief after the rapid rate hikes of recent years. That’s good news for buyers—but affordability is still a concern. With the median home price at $374,500, many buyers are stretching to make the numbers work (Houzeo).
On average, homes are sitting for 60 days on the market, a sign that buyers are being a bit more selective.
🏘️ The Rental Market: Rising Demand, Especially in Cities
The rental market in Georgia is heating up again, with median rent now at $1,949, up slightly from last year. The rise is driven largely by young professionals and families flocking to job hubs like Atlanta, Augusta, and Macon (Steadily).
If you’re a real estate investor—or thinking about becoming one—it may be a great time to explore rental property opportunities, especially in high-demand metros.
🧾 New Laws on the Horizon: A Win for Owners?
One of the most talked-about updates: In late 2024, Georgia voters passed a constitutional amendment that caps property tax increases based on inflation (Wall Street Journal).
That’s great news for existing homeowners, but there’s a flip side—it could shift more of the tax burden onto new buyers and renters over time. We’ll be keeping a close eye on how this plays out in local counties.
🔮 What’s Next? Q2 and Beyond
So what can we expect from the Georgia housing market for the rest of 2025?
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Modest appreciation is likely, with home values expected to rise around 2–3% statewide (Harry Norman Realtors)
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Some price corrections may occur in higher-priced neighborhoods to improve affordability and encourage more buyers to jump in (Rising Star Properties)
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If mortgage rates dip further or if the Fed cuts interest rates mid-year, buyer demand could surge again heading into summer
👩💼 What This Means for You
At Modern Heart Realty, we’re here to help you navigate whatever the market throws your way. Whether you’re looking to buy your first home, list a property, or build your real estate portfolio—we’ve got the tools and insights to help you win.
Want a free market analysis? Thinking about investing this year? Let’s chat. We love this market, and we love helping our clients make smart moves.
📞 Call, text, or DM us anytime. Your heart’s next home might be closer than you think.