In the Atlanta, GA market in May, closings of new homes climbed year-over-year, and with a stronger bump than April 2016, there are signals the market may be bolstering. New home closings saw a rise of 14.1% from the year earlier to 1,505. In comparison, new home closings in the same month last year saw a 11.3% jump year-over-year in April.
A total of 16,055 new homes were sold during the 12 months that ended in May, up from 15,869 for the year that ended in April.
Out of all housing closings, new home closings made up 11.7%. New home closings were 10.8% of overall closings last year. Following a decline in April year-over-year, closings of new and existing homes jumped year-over-year in May.
Pricing and Mortgage Trends
The average value for new homes sold in May 2016 was $337,468, a move from $338,952 a year earlier. This followed a 7.6% rise in April year-over-year.
Average mortgage size on new homes saw a drop year-over-year in contrast to prices of new homes. In May 2016, average mortgage size dropped 1.4% from a year earlier to $278,128. Average mortgage size rose 5.8% in April 2016 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. Single-family home closings jumped from 84.5% of new closings in May 2015 to 87.2% of closings in May 2016. Meanwhile, attached units as a percentage of all new home closings fell to 12.8% of closings from 15.5% of closings.
The average unit size of newly sold homes increased 11.3% year-over-year to 3,399 square feet in May 2016. The average size of newly sold homes moved from 2,896 square feet in April 2015 to 3,083 square feet in April 2016.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in May, but did not appear to be dragging the market. Foreclosures and REO closings, taken together, made up 17.8% of existing closings, lower than 25.6% a year earlier. The percentage of existing home closings involving foreclosures dropped to 7.1% in May from 13.5% a year earlier while REO closings as a percentage of existing home closings sank to 10.7% from 12.1% a year earlier.