The Atlanta Housing Market is on the Rise!
The Atlanta housing market is rapidly improving. I wanted to post this recent article by Metrostudy denoting a 10% year over year increase. Wow! Please the read the article below!
Due to strong demand and limited supply of both new and resale houses, home prices could rise by as much as 10% in 2013. Net job growth may push this number even higher.
According to a recent report by Metrostudy, a national housing intelligence and consulting firm that maintains the most extensive primary database on residential construction in the US housing market,
“Net jobs in Atlanta through December 2012 increased by 37,400 positions or 1.6%. The region has experienced positive job growth for 30 consecutive months with an average of 28,027 net new jobs created monthly. Forecasters are predicting net employment gains in Atlanta for 2013 above 47,000. An uptick of this magnitude should increase consumer confidence and push demand even higher for housing,” said Eugene James, director of Metrostudy’s Atlanta Region.
According to Metrostudy’s yearend field survey, there were a total of 8,288 new homes started during 2012, which is a 53% increase compared to 2011. During 4Q12 there were 2,265 new home starts, which is a 85% increase compared to 4Q11. What’s really amazing is that after removing townhouses, single family detached housing starts were up over 91% in 4Q12 vs. one year ago.
New home closings were up 25% comparing 4Q12 to 4Q11 and annual closings were up by 13% with 8,675 people moving into their new homes in 2012. There were a total of 2,545 new homes closed in 4Q12. Quarter over quarter closings increased as well, up 8% which is most likely attributed to the completion of presold units that went “under contract” while still under construction or sold before construction even begin. New home inventory is at half the level from where it was 10 years ago, and is barely able to serve the growing demand for new housing. “Low interest rates and rising home prices helped move some people sitting on the sideline into the housing market” said,” said James.
Resale trends are on the rise as well. Atlanta annual resale closings volume was up 6% from one year ago. There were 81,702 single family detached used and REO properties sold over the past 12 months ending in December 2012. 37% of these closings were REO sales (one year ago it was 42%).
The December 2012 median sales price was $115,000 which is +10% above the year over year median sale price of $104,500. “Low inventory levels and strong demand for housing seem to be putting upward pressure on resale home prices and we expect to see this trend to continue throughout the coming year” said James.
“For several years I was being called Mr. Doom and Gloom on account of all the bad news I’ve been delivering about the housing market. Now I’m being referred to as Mr. Boom” said James.
For information contact:
eugene james @ 404.370.9001 x 111
email: ejames@metrostudy.com
About Metrostudy
Metrostudy is the leading provider of primary and secondary market information to the housing industry and related industries nationwide. In addition to providing its own primary housing data for approximately 70% of the United States housing market, the company is recognized for its consulting expertise regarding real estate development, marketing and economic issues, and is a key source of research studies evaluating the marketability of residential and commercial real estate projects. Services are offered through an extensive network of offices located in major metropolitan areas throughout the U.S. For more information, visit www.metrostudy.com.
