Metro Atlanta new home sales Archives

New Homes Increase 7 Percent in April

Sales of new homes increased nearly 7 percent in April to a seasonally adjusted annual rate of 517,000, according to the U.S. Census Bureau.

New Homes Numbers Still Below Average

The new homes numbers are still below-average historically, but they are up 26 percent compared with April 2014. Plus, home builders were relieved that sales bounced back in April after slumping in March. U.S. building permits rose 6%, while housing starts rose 9% versus a year ago, not seasonally adjusted. Bloomberg's Josh Wright reports on "Bloomberg Markets."

New homes, however, represent only a fraction of the housing market. Sales of existing homes fell 3.3 percent in April to a seasonally adjusted annual rate of 5.04 million, the National Association of Realtors reported recently. The good news is that existing home sales topped 5 million for the second consecutive month. Most real estate agents and brokers agree that sales could have easily been higher if more homes were on the market.

This supply shortage, plus higher home prices, could spur demand for more new homes to be constructed.

Keep up with Metro Atlanta new homes and new home sales by continuing to check our site daily for more news and information as it pertains to the sale of new homes and existing homes.

Don't forget, we also post tips daily on Twitter and Facebook, sometimes pertaining directly to Metro Atlanta new homes. Find us there as well.

Metro Atlanta New Homes: Market Looking to Recover

The Metro Atlanta new homes market was a bit on the sluggish side overall in 2014, but some analysts look for things to turn around in the next 2 to 3 years.

Some blame the overall slow comeback on builders who are reluctant to move very far outside of their familiar markets into more peripheral areas as well as their refusing to cut prices.

Metro Atlanta New Homes Cost Much More

Buyers who purchase Metro Atlanta new homes are paying much more than those who buy existing Metro Atlanta homes. The price gap between the two types of homes, which historically has been in the 15 percent to 20 percent range, has ballooned to between 30 percent and 40 percent in recent years, according to data from the National Association of Realtors.

Construction of Metro Atlanta new homes have been at low levels the last few years. Single-family housing starts nationwide this year reached 650,000, but a more normal rate for the sector is considered to be 1 million. A shortage of new-home construction is putting higher premiums on Metro Atlanta new homes as well as those in other areas nationwide.

Underproduction of Metro Atlanta new homes is one key reason for pushing up prices, and that price premium could widen even more if housing starts don't rebound soon. On a national level, NAR projects single-family housing starts to rise to 820,000 in 2015, which is still under the historical average.

We'll keep an eye on this trend for Metro Atlanta new homes and keep you informed on how builder sentiment and reluctance to lower prices affects the market as we move forward through 2015.

Don't forget, we also post tips and news about Metro Atlanta real estate and other general real estate news daily at Twitter and Facebook. Be sure to follow us there.

Metro Atlanta New Home Sales Hit 6 Year High

Metro Atlanta new home sales are at the highest level since 2008

After falling for two consecutive months, Metro Atlanta new home sales jumped 18 percent in August to the highest level since 2008.

The jump in Metro Atlanta new home sales for August comes during the same month when housing construction slumped. Housing starts fell 14.4 percent in August, the biggest one-month drop in more than a year. Even so, home construction in July reached the highest level in almost seven years.

For the companies that build new homes, optimism is rising.

A recent report from the National Association of Home Builders said its builder confidence index rose for he fourth consecutive month in September, to the highest level since November 2005.

Metro Atlanta New Home Sales Catching Up With Builder Sentiment

While this report is prone to some volatility and revisions, it's promising to see Metro Atlanta new home sales finally begin to catch up with home-builder sentiment, which is at its highest level in almost a decade

The monthly builder survey covers current sales conditions, prospective buyer traffic and future sales expectations. All its metrics rose in September, according to the NAHB.

Why is this news about Metro Atlanta new home sales so important?

Home building, which accounts for about 3 percent of gross domestic product compared with about 12 percent for capital spending, matters because of its "broader linkages that will feed back into the economy" to spur household spending, wealth, hiring, and confidence.

We'll continue to keep a sharp eye on trends that affect Metro Atlanta new home sales, and report any and all trends in future updates here on our website.

In the meantime, find more current Metro Atlanta real estate news articles under our Atlanta Real Estate News section under the Atlanta Real Estate Categories to your right.

Metro Atlanta New Home Sales Down Again in July

Metro Atlanta new home sales fell for a second straight month in July, but a surge in the stock of properties on the market and a moderation in price increases should help to stimulate demand in the months ahead.

Other data released recently showed activity in the vast services sectors slowed again in August. The reports, however, did little to change views the economy is on a strong growth path, against the backdrop of relatively strong job growth and manufacturing activity.

Metro Atlanta New Home Sales Data Small Sample

The weak Metro Atlanta new home sales pace is at odds with other data that have suggested the housing market recovery is back on track. Metro Atlanta new home sales data, however, is volatile month-to-month because of being a small sample.

Data recently showed a jump in new home construction in July. Home resales also rose to a 10-month high in July.

In a separate report, financial data firm Markit said its preliminary services Purchasing Managers Index slipped to 58.5 this month from 60.8 in July.

A reading above 50 signals expansion in the services sector. Despite the slight cooling in activity, businesses were upbeat about prospects in the year ahead.

That fits in with expectations of sturdy economic growth in the second half of 2014 and through early next year.

A run-up in mortgage rates, as well as a shortage of homes on the market, weighed on housing in the second half of 2013. But housing inventory is picking up and home price appreciation is slowing.

To stay abreast of news as it affects Metro Atlanta new home sales, as well as Metro Atlanta real estate news, check out the Atlanta Real Estate News section of articles to your right under Atlanta Real Estate Categories.

Metro Atlanta New Home Sales Up in October

Statistics from the Mortgage Bankers Association indicate an increase in Metro Atlanta new home sales in October.

Metro Atlanta new home sales were up 11 percent in October versus September figures MBA's Builder Application Survey for October shows mortgage applications for Metro Atlanta new home sales increased by 11 percent from September. The change doesn't include any adjustments for seasonal patterns.

Breaking the data down by product type: Conventional loans accounted for 67.5 percent of loan applications in October, while loans backed by the Federal Housing Administration (FHA) made up 17.8 percent. Mortgages made through the Department of Veterans Affairs accounted for 13.8 percent, and loans made through the U.S. Department of Agriculture and the Rural Housing Service composed 0.9 percent.

Using information from the survey as well as assumptions regarding market coverage and other factors, MBA estimates sales of new single-family homes nationwide ran at a seasonally adjusted annual rate of 509,000 in October. Unadjusted, the group estimates sales totaled 40,000.

The average loan size for Metro Atlanta new home sales was up nearly $5,000 in October, increasing to $294,480.

Metro Atlanta New Home Sales Up – Sellers Scaling Back

With Metro Atlanta new home sales up, sellers of previously owned homes this year have been aggressive in pricing their listings on the market. However, new data from technology-powered broker Redfin shows more and more sellers have had to dial back their expectations.

Only about one in seven sellers had to resort to reducing their listing price in order to move their property, Redfin reported. However, that number has steadily risen to one in four as of September.

Hope isn't lost for sellers looking to get as much as they can out of their home, though—Redfin's data for October shows slightly fewer homes taking a price cut, ending a seven-month streak.

With home prices now increasing at a less dramatic rate than earlier this year, sellers and agents are better able to price homes accurately without having to make adjustments later. Now that we're entering the winter months, sellers tend to be in less of a rush to sell at this time of the year, so price drops are expected to be less common for now.

To stay abreast of Metro Atlanta new home sales news, as well as news affecting Metro Atlanta re-sale homes, check out our other news articles by clicking on the Atlanta Real Estate News link to your right under Atlanta Real Estate Categories.