New Home Starts Increase by 28% in First Quarter of 2014
Just like the weather outside, the Atlanta housing market is heating up! The first quarter of 2014 saw both new home construction and home prices on the rise, as well as a strong demand from prospective home buyers. According to Metrostudy, a national housing information and consulting firm, new home starts totaled 3,401 homes during the first quarter of 2014.
The metro area has also seen excellent job growth this year, as the region created 51,500 new jobs from March 2013 to March 2014. Employment was up by 2.2 percent during this time period.
“Job growth is one of the single most important drivers of home demand, and Atlanta’s pace of job growth is one of the highest in the nation,” said Eugene James, regional director of Metrostudy’s Atlanta market. “This ranks Atlanta as the sixth best region among all metro areas in terms of year-over-year job creation, and we have recovered 98 percent of the jobs that were lost to the great recession.”
Another important factor in the demand for new homes is the availability of resale homes on the market. The supply of these homes has remained low in Atlanta for more than two years, with the current supply hovering at 3.9 months.
“All of these factors have contributed to an impressive first quarter of 2014 for the single-family home market in Atlanta,” James said.
As of the end of March, Atlanta new home builders had started a total of 14,615 homes over the past year, which is the highest annual tally since the third quarter of 2008. This makes new home starts up by 55 percent on an annual basis.
New home starts have historically been a strong indicator of the demand for new homes and the number of closings that are expected. With an increase of 38 percent over last year, there were 12,908 closings on new homes. In addition, closings on new homes were up 37 percent in the first quarter of 2014 as compared to the same time period last year.
The high demand from buyers and the current low inventory on the market has pushed the median sales price for new homes to an all-time high for the region. The median sales price for the first quarter of 2014 reached $275,000, and this number is expected to climb as inventory remains tight.
With market conditions improving, now is the perfect time to begin your new home search. For more information on new homes in metro Atlanta, click here.