There was a rise in closings of new homes in the Atlanta, GA market in March year-over-year, but signs of market leveling were showing as the percentage lift was less than February 2016. There was a 5.7% rise in new home closings from a year earlier. This followed a 13.9% climb year-over-year in February.
A total of 15,563 new homes were sold during the 12 months that ended in March, up from 15,491 for the year that ended in February.
Out of all housing closings, new home closings accounted for 12.5%. A year earlier, new home closings accounted for 11.6% of total closings. Following a year-over-year increase in February, closings of new and existing homes declined year-over-year in March.
Pricing and Mortgage Trends
The average price of new homes was $323,331 per unit in March, up 2.2%from a year earlier. This hike compares to a 2.0% decline in February from a year earlier.
In March 2016, average mortgage size on new homes went from $268,759 in March 2015 to $270,198 in March 2016. Average mortgage size sank 2.9% in February 2016 from a year earlier.
Other Market Trends
Single-family homes accounted for a greater percentage of new home closings than last year. The share of new home closings belonging to single-family homes gained from 83.9% in March 2015 to 85.3% of closings in March 2016. Conversely, the share of new home closings belonging to attached units dropped to 14.7% of closings from 16.1% of closings.
The average unit size of newly sold homes increased 8.6% year-over-year to 3,216 square feet in March 2016. The boost was sharper than the bump in average price of newly sold homes, making the movement simliar to February 2016 when the average size gained 6.6% to 2,792 square feet from a year earlier. The average size of newly sold homes moved from 2,988 square feet in February 2015 to 2,792 square feet in February 2016.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in March, but did not appear to be dragging the market. Foreclosures and REO closings, taken together, represented 22.6% of existing closings, lower than 26.9% a year earlier. The percentage of existing home closings involving foreclosures went from 10.3% in March 2015 to 10.5% in March 2016 and REO closings as a percentage of existing home closings declined to 12.1% from 16.6% a year earlier.