The Atlanta condo and townhome market continued its trend toward a more balanced condition in Q3 2025. Closed sales declined -8.1% compared to the same period last year, reflecting a shift in momentum from the strong seller advantages of previous years. With fewer closed transactions, sellers face increasing competition, requiring careful pricing and strategy to achieve success.

The median sales price dipped slightly, down -0.5% to $359,000, while the median Sale-to-Original-List-Price (S/OLP%) dropped -1.9 points to 95.4%. Inventory increased, with Months of Supply rising +35.7% to 5.7 months, placing the market very close to an official balanced condition. At the same time, the Failed Listing percentage rose to 53.7%, median Days on Market (DOM) increased by +74.3% to 61 days, and price reductions affected 57% of all transactions. Collectively, these indicators show that the market is moving toward equilibrium between buyers and sellers.

Market Weaknesses & Seller Pressures

Overpricing remains a significant challenge, with 80% of listings initially overpriced, often leading to costly price reductions. Sellers also contributed to buyer closing costs in 65.9% of closed transactions, a +4.3 point increase over last year. Rising supply, increasing failed listings, longer marketing times, and declining S/OLP percentages illustrate that buyers are gaining negotiating leverage.

The condo/townhome market is showing clear signs of balance. While 5.7 months of supply still represents a slight seller’s market, the risk of overpricing is increasing, potentially limiting seller success and slowing market growth. Sellers who price their homes correctly from the start continue to see better outcomes, representing 37.4% of closed transactions, selling in a median of 17 days at 99% of the asking price. Buyers are taking advantage of increased inventory and negotiation opportunities.

Importance for Sellers

Despite the shifting market, demand remains healthy. Many sellers may attempt to list their properties above market expectations, but higher inventory and slower sales make overpricing risky. Setting realistic, market-aligned listing prices offers the best chance to sell quickly and at or above the asking price, as seen with 25.2% of sellers in Q3 2025.

Monitoring price reductions and failed listings is essential to minimize overpricing risks. The impact of distressed properties on non-distressed sale prices has largely diminished due to reduced distressed inventory.

Importance for Buyers

The market still slightly favors sellers, so buyers must act quickly and make attractive offers to secure desirable properties. 31.3% of all sales occurred within the first 30 days with a median S/OLP of 99.3%. High-value properties move even faster, with median DOM at 17 days and median S/OLP of 99%, often with multiple offers. Quick, serious offers remain critical to securing the best opportunities.

• Price competitively from the outset to maximize sale price and minimize marketing time.

• Identify “Green Box” listings—properties likely to sell quickly and at or above asking price.

• Carefully assess upward pricing flexibility, particularly for listings above $500K.

• Reassess market trends regularly and adjust pricing promptly to avoid chasing the market.

Consequences of Incorrect Pricing:

• Much longer marketing times—median DOM is 5× longer (+2.8 months).

• Lower sale prices—median 7.1 percentage points below original listing price.

• High failure rates—53.7% of listings failed to sell.

• Multiple listing periods—41.7% required multiple listing cycles.

Risks for Buyers

• Low-ball offers on high-value properties often result in missed opportunities.

• Offers that are too high on price-reduced or repeatedly listed properties may lead to overpayment.

• Seller’s market conditions limit negotiation power, making unsubstantiated low offers unlikely to succeed.