Brookhaven Real Estate Market Forecast 2023

Brookhaven is an affluent community popular for its excellent location near amenities and natural views and its inventory of single-family homes on peaceful and private properties. As with the rest of the U.S., the Brookhaven housing market is leveling out, a trend that will likely continue into the new year, despite its current sellers’ market conditions. To better understand the forecast for 2023, here’s a quick overview of Brookhaven's current local real estate market.

For a summary of the current market, consider the following trends. In Brookhaven, the median listing price for single-family homes is in the high six figures and has increased in the past year. Meanwhile, homes are selling faster in 2022 than in 2021. Along with a statewide rental increase, these figures indicate the robustness of Brookhaven real estate (more details to follow).

Although Brookhaven is experiencing a moderation in its real estate market, the area's demand for properties is still high. This is evident in the increasing median list price for single-family homes and the decrease in median days on the market. Inventory is still low for this area, but with slowing buyer demand, the market has more opportunity to replenish itself, which may improve buyers' conditions. Ultimately, buyers and sellers concerned about understanding the local market should work with an experienced agent familiar with the area, like Heather Cummings.

Brookhaven and Atlanta’s robust economy and population growth also fuel housing demand in the area. Brookhaven’s population is growing about three times faster than the national average yearly. As more people move to Brookhaven and Atlanta, demand increases, and so do rental costs. Although an affluent area, Brookhaven is still attainable compared to other Georgia suburbs and regions in the U.S. (the cost of living in Brookhaven is about the same as the national average).

The intensity of Brookhaven’s seller’s market will likely settle in the upcoming year. Home sales will keep decreasing through the new year, caused by high mortgage rates and inflation for buyers. With decreasing home sales, inventory may increase, leading to lower median sales prices for sellers listing their Brookhaven real estate.

However, given Brookhaven and Atlanta’s economy, their increasing population, and the low national unemployment rate, Brookhaven’s housing market will remain competitive through 2023. Although median listing prices may not be increasing as fast as they once did, they are still rising and are currently much higher than before 2021. Compared to other U.S. locations, Brookhaven is in the top quintile for real estate appreciation, a good sign for buyers.

Buyers looking for properties in Brookhaven in the next year can expect an equal mix of positives and negatives. As the local market slows in this suburb, more properties will become available at a lower price. This means buyers will have more time to search for homes without being pulled into a bidding war and have more options. Slower increasing prices are also a plus, given economic obstacles like inflation and high interest rates.

Like the rest of the U.S., average interest rates in Georgia are on an upward trend. As of November 2022, buyers financing an offer with a 30-year mortgage can expect an interest rate of 7.23%. If you were to obtain a 15-year mortgage in November 2022, you could expect an interest rate of 6.45%.

Another factor to look out for in the upcoming year is population growth. Buyers in 2023 will still experience a competitive market due to demands for homes near job opportunities in the area. Keep these things in mind when starting your search into the new year.

Like buyers, sellers can expect a mix of pros and cons going into 2023. As stated before, the market will continue to cool into the new year, which may make selling your home more complicated than it has been in the past. With buying power affected by inflation and interest rates, many sellers may have to list their homes at a lower price to attract offers. Additionally, sellers may experience more competition as inventory increases with less frequent home sales.

Despite this cool down, sellers going into 2023 should still be optimistic about listing their Brookhaven real estate. Areas like Ashford Park, Brittany, or Cambridge Park have great amenities, like a growing number of restaurants and stores, many neighborhood pocket parks, and locally-owned boutiques that create a real community feel in the Atlanta metro. These amenities bolster appreciation rates in the area. With this, home prices and values will remain high, and inventory will likely remain tight for the growing population, which means sellers can expect good offers from buyers in 2023.

New investors looking to break into Brookhaven in 2023 will benefit from its high renter ratio, as about half of the occupied housing units in the area are used by renters. With mortgage rates increasing, renting may be a more viable option for those interested in the area. As the average rental rate experienced a sharp increase in the past year, now may be a good time to invest.

New investors should also consider the competitive market in the area. Although slowing, investors will still be impacted by 2023’s high median listing prices, mortgage rates, and increasing population. Investors already established in the area can expect to continue benefiting from the current demand and appreciation rates for properties going into the new year.

2023 will bring advantages for buyers and sellers alike, making it an excellent place to buy or sell. Those interested in starting their search or ready to list their home can contact experienced local agent Heather Cummings to help guide them through the process. In addition to Brookhaven, Heather works with buyers and sellers on transactions in Buckhead, Chamblee, Decatur, Roswell, and Smyrna, as well as additional areas. Reach out to Heather today to find out more and congratulate yourself on taking such an important step in your real estate journey.