There was a rise in new home closings in the Atlanta, GA market in April year-over-year, and the percentage surge was sharper than March 2016, hinting that the market may be strengthening. Closings climbed 8.7% from a year earlier to 1,341. In comparison, new home closings in the same month last year saw a 6.9% rise year-over-year in March.
A total of 15,701 new homes were sold during the 12 months that ended in April, up from 15,594 for the year that ended in March.
Of 11,302 total closings, 1,341 were of new homes. This is a rise from 9.7% of closings a year earlier. After remaining steady in March from a year earlier, closings of new and existing homes sank year-over-year in April.
Pricing and Mortgage Trends
Average price of newly sold homes saw a 7.4% surge year-over-year in April to $335,665 per unit. This bump is an improvement over the 2.2% hike in March year-over-year.
There was a rise year-over-year in the average mortgage size on new homes along with new home prices. It climbed to $281,788 in April, a 5.4% lift. Average mortgage size went from $268,896 in March 2015 to $270,528 in March 2016.
Other Market Trends
There has not been much movement in the composition of the market with regard of the types of properties sold. From a year ago, single-family home closings have moved from 83.6% of new home closings to 84.3% of closings while attached units have gone from 16.4% of closings to 15.7% of closings.
For all new homes sold, the average unit size gained 7.5% year-over-year to 3,116 square feet in April 2016. An increase in both the average size and price of newly sold homes was also seen in March 2016 when the average size jumped 9.3% to 3,236 square feet. The average size of newly sold homes moved from 2,961 square feet in March 2015 to 3,236 square feet in March 2016.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in April, but did not look to be a burden on the market. Together, foreclosures plus REO closings represented 20.6% of existing home closings, down from 30.6% a year earlier. The percentage of existing home closings involving foreclosures fell to 9.5% in April from 14.5% a year earlier while REO closings as a percentage of existing home closings dropped to 11.1% from 16.1% a year earlier.