There was an increase in new home closings in the Atlanta, GA market in June year-over-year, but with an increase less steep than that of May 2016, the market seemed to be showing signs of leveling out. New home closings saw a 14.3% boost from a year earlier to 1,575. This followed a 14.4% rise year-over-year in May.
A total of 16,265 new homes were sold during the 12 months that ended in June, up from 16,068 for the year that ended in May.
Out of all housing closings, new home closings accounted for 11.6%. This is better than the 10.2% of closings a year earlier. After new and existing closings rose in May year-over-year, they stayed level in June.
Pricing and Mortgage Trends
The average per-unit price of newly sold homes climbed year-over-year to $320,515 in June, up 2.1% from last year. This hike follows a move from $339,025 per unit in May 2015 to $338,254 in May 2016.
The average mortgage size on new homes moved north year-over-year along with new home prices. It rose to $271,320 in June, a 2.5% surge. In May 2016, average mortgage size dropped 1.3% 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 86.6% of new home closings to 87.2% of closings while attached units have gone from 13.4% of closings to 12.8% of closings.
There was a 8.9% gain year-over-year in the average unit size of newly sold homes to 3,340 square feet in June 2016. In May, the average size of new homes sold went from 3,055 square feet a year earlier to 3,484 square feet.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in June, but did not look to be a burden on the market. Foreclosures and REO closings, taken together, accounted for 19.1% of existing closings, lower than 23.9% a year earlier. The percentage of existing home closings involving foreclosures slid to 7.9% in June from 9.9% a year earlier while REO closings as a percentage of existing home closings fell to 11.3% from 14.0% a year earlier.