New home closings gained year-over-year in November in the Atlanta, GA market, and the percentage bump, which was better than October 2015, suggested the market may be improving. New home closings saw a hike of 16.6% from the year earlier to 1,192. This came on the heels of a 9.2% climb year-over-year in October.
A total of 14,832 new homes were sold during the 12 months that ended in November, up from 14,662 for the year that ended in October.
As a percentage of overall housing closings, new home closings represented 14.2%. This marks a rise from 12.2% of total closings a year earlier. Closings of new and existing homes remained steady in November after rising in October year-over-year.
Pricing and Mortgage Trends
The average price of new homes increased year-over-year in November to $337,068 per unit, a rise of 4.6%. This gain is smaller than the 10.8% lift in October year-over-year.
The average mortgage size on newly sold homes rose year-over-year along with the average price of new homes. It climbed to $282,552 in November, a 5.8% lift. In October 2015, average mortgage size on newly sold homes saw a 10.8% boost year-over-year from a year earlier.
Other Market Trends
The percentage of new home closings belonging to single-family homes has risen from last year while the portion of new home closings belonging to attached units has dropped. The share of new home closings belonging to single-family homes rose from 81.6% in November 2014 to 86.5% of closings in November 2015. Conversely, the share of new home closings belonging to attached units declined to 13.5% of closings from 18.4% of closings.
For all new homes sold, the average unit size slid 1.2% year-over-year to 2,961 square feet in November 2015. In October, the average size of new homes sold went from 2,945 square feet a year earlier to 3,085 square feet.
Foreclosures and real estate owned (REO) closings declined in November from a year earlier, but stayed a drag on the market. Foreclosures and REO closings, taken together, made up 25.3% of existing closings, lower than 34.3% a year earlier. The percentage of existing home closings involving foreclosures sank to 12.6% in November from 17.6% a year earlier while REO closings as a percentage of existing home closings slid to 12.7% from 16.7% a year earlier.