There was an increase in closings of new homes in the Atlanta, GA market in January year-over-year, but the percentage gain was less than December 2015, suggesting the market may be leveling. Closings rose 16.1% from a year earlier to 938. This was after the housing market saw a 21.0% rise year-over-year in December.
A total of 15,324 new homes were sold during the 12 months that ended in January, up from 15,194 for the year that ended in December.
As a percentage of overall housing closings, new home closings represented 11.8%. This is better than the 10.6% of closings a year earlier. Closings of new and existing homes climbed year-over-year in January after also rising in December year-over-year.
Pricing and Mortgage Trends
Average price of newly sold homes saw a 2.7% rise year-over-year in January to $332,809 per unit. This gain is smaller than the 2.9% bump in December year-over-year.
The average mortgage size on newly sold homes gained year-over-year along with the average price of new homes. The average mortgage size saw a 2.9% lift year-over-year to $279,341 in January. In December 2015, average mortgage size rose 3.6% from a year earlier.
Other Market Trends
There has been little change in the composition of the market with regard to the types of properties sold. From a year ago, single-family home closings have moved from 85.3% of new home closings to 84.4% of closings while attached units have gone from 14.7% of closings to 15.6% of closings.
There was a 5.8% drop year-over-year in the average unit size of newly sold homes to 2,853 square feet in January 2016. In December, the average size of new homes sold went from 3,028 square feet a year earlier to 3,018 square feet.
Foreclosures and real estate owned (REO) closings fell in January from a year earlier, but remained a drag on the market. Together, foreclosures plus REO closings represented 29.2% of existing home closings, down from 38.0% a year earlier. The percentage of existing home closings involving foreclosures sank to 15.7% in January from 20.0% a year earlier while REO closings as a percentage of existing home closings dropped to 13.5% from 18.0% a year earlier.