In February, closings of new homes in the Atlanta, GA market increased year-over-year, but signs of market leveling were showing as the percentage gain was less than January 2016. There was a 13.1% rise in new home closings from a year earlier. This came after a 17.0% boost year-over-year in January.
A total of 15,477 new homes were sold during the 12 months that ended in February, up from 15,344 for the year that ended in January.
New home closings represented 13.1% of overall housing closings. This is a lift from 11.9% of closings a year earlier. For new and existing homes, closings jumped year-over-year in February after also increasing in January year-over-year.
Pricing and Mortgage Trends
In February, the average price of newly sold homes dropped 1.6% year-over-year to $326,408 per unit. This fall compares to a 2.4% rise in January year-over-year.
The average mortgage size on newly sold homes moved south year-over-year in contrast to new home prices. Average mortgage size sank by 3.1% from a year earlier, settling at $269,061 in February. In January 2016, average mortgage size on newly sold homes saw a 2.7% hike year-over-year 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 February 2016. Single-family home closings have represented 85.1% of new home closings while attached unit closings have accounted for 14.9% of closings.
For all new homes sold, the average unit size fell 6.6% year-over-year to 2,792 square feet in February 2016. The average size of newly sold homes moved from 3,012 square feet in January 2015 to 2,857 square feet in January 2016.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in February, but did not look to be a burden on the market. Combined, foreclosures plus REO closings accounted for 24.9% of existing home closings, below 34.2% a year earlier. The percentage of existing home closings involving foreclosures declined to 11.7% in February from 14.5% a year earlier while REO closings as a percentage of existing home closings dropped to 13.2% from 19.7% a year earlier.