Housing Inventory Curbs Atlanta Housing Growth Despite Continued Gain in Home Sales
Thanks in part to single-family home sales’ biggest gain in 24 years, last month’s Atlanta residential real estate index rose 0.3 to 7.4. This month, the Atlanta market showed improvements in home sales and home prices. However, without the impressive record-shattering statistics and the lack of housing inventory, the Cal-Culator will remain stagnant for the month of June.
Housing Areas That Could Use Improvement
On June 29, the Atlanta Journal-Constitution published “It’s not just you, Atlanta’s home shortage is worst in nation,” revealing the city has the scarcest inventory of any major market in the U.S, resulting in higher prices and quicker sales. Atlanta counties’ housing inventory fluctuations range from a 25-percent decrease in inventory from May 2015 in Paulding County to a 4-percent decrease in Fulton County. Virgent Realty estimates Atlanta inventory is at a five-year low for active inventory on the market. However, one county’s inventory has actually risen 2.4 percent: Forsyth.
Housing Areas That Shined in June
The Atlanta Realtors Association’s most recent Market Brief found residential sales increased 3.4 percent from the previous year. Yearly price increases in Atlanta counties range between a 1.9 percent change in Cobb County to a much more staggering 15.7 percent in Paulding County.
“May sales results continue to show a healthy increase in both closed units and average sales price. Coupled with the April adjusted sales figures now reflecting a sales increase of 6.7 percent over the same time last year, the overall Atlanta market seems to be experiencing healthy growth and absorption of existing inventory,” said ARA President Lane McCormack.
National Association of Home Builder’s Housing Market Index increased a respectable four points in the South from May to June, while also increasing one point from the previous year. After the Western market, the South is leading the nation in market confidence. The HMI is based on a monthly survey of NAHB members designed to take the pulse of the single-family housing market. The survey asks respondents to rate market conditions for the sale of new homes at the present time and in the next six months as well as the traffic of prospective buyers of new homes.
Lastly, CoreLogic found foreclosures decreased 15.8 percent year over year and foreclosure inventory decreased 3 percent from March 2016 – representing 54 months of consecutive year-over-year declines.
“The recovery in home prices and improved labor market have contributed to the drop in seriously delinquent rates. Over the 12 months through April, the CoreLogic Home Price Index for the U.S. rose 6.2 percent and the labor market gained 2.6 million jobs,” said Frank Nothaft, chief economist at CoreLogic.
The next Cal-Culator will be released August 9, which will hopefully reflect positive movement after a month of stagnation.