Closings of new homes increased year-over-year in August in the Atlanta, GA market, but the increased on a percentage basis less sharlpy than July 2015, showing signs of market stabilization. New home closings saw a 25.5% climb from a year earlier to 1,329. In comparison, new home closings in the same month last year saw a 26.4% jump year-over-year in July.
A total of 14,125 new homes were sold during the 12 months that ended in August, up from 13,855 for the year that ended in July.
Of the total number of closings, new home closings made up 11.0%. They accounted for 10.1% of closings a year earlier. Closings of new and existing homes rose year-over-year in August after also rising in July year-over-year.
Pricing and Mortgage Trends
The average price of new homes climbed year-over-year 5.1% in August to $332,882 per unit. This rise is smaller than the 5.5% lift in July year-over-year.
For newly sold homes, the average mortgage size climbed year-over-year along with new home prices. The average mortgage size saw a 5.6% boost year-over-year to $277,284 in August. In July 2015, average mortgage size gained 4.5% from a year earlier.
Other Market Trends
As a share of new home closings, single-family home closings have climbed from last year while the share belonging to attached units has fallen. The share of new home closings belonging to single-family homes grew from 81.5% in August 2014 to 88.2% of closings in August 2015. Conversely, the share of new home closings belonging to attached units sank to 11.8% of closings from 18.5% of closings.
The average unit size of newly sold homes went from 2,952 square feet in August 2014 to 2,972 square feet in August 2015. In July 2015, the average size of newly sold homes climbed 3.9% from the year earlier. In July, the average size of new homes sold went from 2,998 square feet a year earlier to 3,116 square feet.
Foreclosures and real estate owned (REO) closings declined in August from a year earlier, but stayed a drag on the market. Together, foreclosures plus REO closings represented 25.9% of existing home closings, down from 29.4% a year earlier. The percentage of existing home closings involving foreclosures went from 15.3% in August 2014 to 15.5% in August 2015 and REO closings as a percentage of existing home closings slid to 10.4% from 14.2% a year earlier.