MarketNsight, a housing research and feasibility company, announces that pending sales in Atlanta for both new and existing homes fell 4th quarter 2018 over 4th quarter 2017. Pending sales are the leading indicator for housing demand, and this was the first year-to-year decline since 2014. Pending sales were down six percent for the quarter, with November being the worst month — down 10 percent year-to-year. The decline was broad and occurred in both the north side and south side of Atlanta.
According to John Hunt of MarketNsight, “The decline cannot completely be blamed on weather, as resale declined at the same rate.” New construction is more susceptible to weather as builders and developers have to wait to pour concrete for slabs and move heavy machinery.” He continued “As we have been predicting, the continuing lack of available inventory in lower price points is beginning to be a drag on both new and existing sales.” The lack of inventory, anticipation of the December Federal Reserve rate hike, and the Government shut down combined to put a damper on 4th quarter activity.”
“Months of Supply continues to be at historically low levels,” said Hunt. “New construction is at five months of supply and resale is at 2.3, compared to the industry accepted equilibrium of six months.”
One positive note is that pending sales rebounded for the month of January, up six percent versus January 2018.
Hunt says, “We expect our long term forecast to hold. That is moderate growth, limited only by the lack of available inventory in the right price points.”
MarketNSight is focused on helping home builders and developers make smart decisions related to purchasing land and pricing product. Its groundbreaking Feasibility Matrix® systemizes the decision-making process and creates a one-stop-shop for gauging new home community feasibility. To learn more or to schedule a demonstration, visit www.MarketNsight.com.
MarketNsight currently serves 20 cities in six states – Alabama, Florida, Georgia, North Carolina, South Carolina and Tennessee. Look for the addition of more cities soon!
To schedule a demonstration of the MarketNsight Feasibility Matrix®, call 770-419-9891 or email info@MarketNsight.com. For information about MarketNsight and Hunt’s upcoming speaking engagements, visit www.MarketNsight.com.