Home prices in Georgia have experienced a modest decline, according to a new report from RedFin. In May 2025, the statewide median sale price dropped by 0.53% compared to the previous year, landing at $383,700. The total number of homes sold also fell significantly by 7.9%, decreasing from 12,703 in May 2024 to 11,698 in May 2025. Notably, just over 21% of homes sold in May were above the listed price, which represents a decrease of 4.5 percentage points year over year. Furthermore, 33.2% of homes experienced a price drop, an increase from 27% at the same time the previous year.
In contrast, certain cities in Georgia have seen significant increases in home sale prices over the past year. LaGrange leads the way with a staggering 44.4% increase, bringing the median sale price to $275,000. Other cities with notable price hikes include Milton at 39.4% ($1.1 million median), St. Simons at 39.4% ($925,000 median), and Thomasville at 39.1% ($320,000 median).
Despite the decrease in home prices overall, Realtor.com indicates that Georgia remains a relatively affordable option for middle-class residents. A family earning the median income of just over $74,000 can allocate a monthly budget of around $1,866 for a mortgage, which aligns closely with the median home price, making home ownership attainable.
While the number of homes for sale in Georgia has risen by 15.7% over the past year, reaching a total of 58,685 listings in May 2025, newly listed homes have decreased significantly by 58.2%. Currently, the average months of supply of homes stands at a stable 4 months.
The report also highlights the competitive nature of the housing markets in cities such as North Decatur, Johns Creek, and Dunwoody, suggesting a mix of opportunities and challenges for both buyers and sellers in these regions.
Overall, while the state’s housing market is seeing some shifts, it still offers viable paths to home ownership, particularly for median-income families. This provides a hopeful perspective for those looking to invest in property within Georgia.