There was an increase in closings of new homes in the Atlanta, GA market in August year-over-year, but signs of market leveling were showing as the percentage boost was less than July 2015. New home closings saw a climb of 25.5% from the year earlier to 1,329. This followed a 26.4% rise 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%. As a part of the whole, new home closings were 10.1% a year earlier. For new and existing homes, closings grew year-over-year in August after also increasing in July year-over-year.
Pricing and Mortgage Trends
Average price of newly sold homes had a 5.1% surge year-over-year to $332,882 per unit in August. This lift is smaller than the 5.5% gain in July year-over-year.
The average mortgage size on new homes moved north year-over-year along with new home prices. In August 2015, the average mortgage size was $277,284, up 5.6% from a year earlier. In July 2015, average mortgage size rose 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 gained from 81.5% in August 2014 to 88.2% of closings in August 2015. At the same time, the share of new home closings belonging to attached units dropped 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 increased 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 fell in August from a year earlier, but stayed a drag on the market. Together, foreclosures plus REO closings accounted for 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 declined to 10.4% from 14.2% a year earlier.