The Southeast Real Estate Market Has Shifted — Here’s What Investors Need to Know
The Southeast Real Estate Market Has Shifted — Here’s What Investors Need to Know A Tier1 Market Insight For the first time in several years, the Southeast real estate market is no longer operating on autopilot. The conditions that fueled aggressive bidding wars, rapid appreciation, and seller-dominated negotiations have materially changed. As we move through 2026, the Southeast is best described as a buyer-leaning, data-driven market—one that rewards discipline, underwriting accuracy, and operational execution. This is not a crash. This is a reset. The Macro Shift: From Momentum to Math Between 2020 and 2022, investors could rely heavily on appreciation and velocity. That environment masked weak underwriting and inflated assumptions. Today’s Southeast market reflects: Higher borrowing costs Slower absorption Expanding inventory in suburban and secondary metros Increased seller concessions and price reductions The result: pricing power has normalized, and risk has shifted back to the buyer. Inventory & Demand: Uneven but Meaningful Across Georgia, Florida, the Carolinas, and Tennessee: Active inventory is up year-over-year Days on market are increasing Buyer urgency has softened However, this is not uniform: Entry-level and mid-market inventory has loosened the most Premium locations, strong school districts, and turnkey homes remain competitive Renovated assets outperform dated or poorly presented properties Takeaway: The market is segmenting. Broad assumptions no longer work. Pricing Reality: The Appraisal Is Back in Control We are seeing consistent patterns across Southeast metros: Initial overpricing followed by multiple reductions Appraisal gaps re-emerging as a constraint Negotiations shifting toward seller-paid credits and repairs Deals now require: Conservative ARV assumptions Current comps, not trailing-year benchmarks Margin buffers for time and capital costs Homes priced for “last cycle” are becoming stagnant listings. Data-Driven Investor View (Tier1 Lens)