Existing Metro Atlanta home sales are expected to finish the year at their highest level since 2006 according to the National Association of Realtors’ economic forecast forum revealed at its 2015 Legislative Meetings & Trade Expo.
However, accelerating price growth and rising mortgage rates have the potential to change the expected finish.
In the most recent existing-homes sales report, sales surged to their highest annual rate in 18 months, showing a promising beginning to the spring homebuying season.
Nationwide, total existing-home sales, which are completed transactions that include single-family homes, townhomes, condominiums and co-ops, jumped 6.1% to a seasonally adjusted annual rate of 5.19 million in March from 4.89 million in February — the highest annual rate since September 2013 (also 5.19 million).
What's Driving Metro Atlanta Home Sales?
Sustained job growth and interest rates below 4% have been the catalyst behind the improvement in Metro Atlanta home sales where supply needs to increase measurably to meet the pent-up demand for buying.
Unlike the existing Metro Atlanta home sales market, demand for single-family new home construction remains weak, and the homebuilding industry is acting accordingly by focusing on multifamily rental housing. New home construction for first-time buyers is about half of the long-term average and the reason is simple: the decline in homeownership and marriage rates among young adults. Things are not projected to return to normal levels for the building market until at least 2017.
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