A recent Reuters report states that new home prices are up 8.3 percent, their highest level in eight months, which is keeping
hope alive of a recovery in the housing market.
Economists polled by Reuters had forecast sales at a 325,000-unit rate in February. Compared to February last year, new home sales were up 11.4 percent. The median price for a new home rose 8.3 percent to $233,700, the highest level since June. Compared to February last year, the median price was up 6.2 percent. Permits for home building approached a 3-1/2 year high in February. The inventory of new homes on the market was unchanged at a record low 150,000 units last month. At February’s
sales pace it would take 5.8 months to clear the houses from the market, up from 5.7 months in January.
A six month inventory is generally considered the equilibrium point, where it is neither a buyer’s nor seller’s market. As we head below six months inventory we could be headed to a seller’s market, again! We are seeing more and more private capital groups entering the Atlanta residential real estate market looking for opportunities to buy foreclosed homes in Atlanta. Some of these groups have more than $100 million allocated for the Atlanta home market. With an improving economy, more capital allocated for investment purchases and historic lows in new home construction, the stage is set for the rebound across all spectrums of the residential market.
For more information about home ownership or real estate investment in Atlanta call Jim LaVallee at 404-847-9080 or write
Jim@EpicDevelopment.com. You can view information about all our Atlanta real estate listings here. For more information about commercial real estate operations or investment visit www.EpiCity.com.