New home closings jumped year-over-year in June in the Atlanta, GA market, and the market seemed to be suggesting strengthening with a percentage hike more robust than May 2015. There was a 20.5% jump in new home closings from a year earlier. This came after a 15.9% rise year-over-year in May.
A total of 13,126 new homes were sold during the 12 months that ended in June, up from 12,899 for the year that ended in May.
New home closings represented 9.8% of overall housing closings. As a part of the whole, new home closings were 9.6% a year earlier. For new and existing homes, closings gained year-over-year in June after also increasing in May year-over-year.
Pricing and Mortgage Trends
In June, the average price of newly sold homes grew 1.6% year-over-year to $315,593 per unit. This gain is smaller than the 4.4% hike in May year-over-year.
The average mortgage size on newly sold homes climbed year-over-year along with the average price of new homes. In June 2015, the average mortgage size was $264,113, up 1.6% from a year earlier. In May 2015, average mortgage size jumped 4.2% from a year earlier.
Other Market Trends
There was no change in the composition of the new home market with regard to the types of properties sold in June 2015. Single-family home closings have represented 86.4% of new home closings while attached unit closings have accounted for 13.6% of closings.
There was a 7.6% decline year-over-year in the average unit size of newly sold homes to 2,765 square feet in June 2015. This drop was opposite the price boost, a pattern also seen in May 2015 when the average size of newly sold homes sank 6.1% to 2,800 square feet. The average size of newly sold homes moved from 2,983 square feet in May 2014 to 2,800 square feet in May 2015.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in June, but did not appear to be dragging the market. Out of all existing home closings, foreclosures combined with REO closings made up 23.6% of closings, below 29.3% a year earlier. The percentage of existing home closings involving foreclosures declined to 9.6% in June from 14.1% a year earlier while REO closings as a percentage of existing home closings fell to 14.0% from 15.2% a year earlier.