MarketNsight, a leading provider of real estate data and analysis, announces that new home market share in March 2023 was up 89% year over year. According to John Hunt, Principal and Chief Analyst at MarketNsight, new home market share growth can be attributed to several factors, including elevated interest rates and a lack of resale inventory.
“Not surprisingly, new home market share went positive year over year beginning in June 2022—precisely when rates crossed the Sensitivity Threshold of 5.25%,” Hunt explained. “Over the ensuing months, many of the subdivisions that were in development came online, offering move-in-ready inventory desperately needed to meet existing demand. With resale inventory remaining sharply depressed, new home market share has grown dramatically, especially in the first quarter of 2023.”
MarketNsight’s data shows that new homes should continue to see market share gains throughout 2023 as elevated rates keep potential existing home sellers on the sidelines. Hunt added, “We expect the trend to continue as builders ramp up production to meet demand, and we anticipate further growth in new home market share as the year progresses.”
The Atlanta real estate market saw a continued decline in inventory through March 2023, which is a normal seasonal trend. However, it is noteworthy that inventory is falling at a faster rate than closings, resulting in a decrease in months of supply. Despite a 34% decrease in inventory since October 2022, the trailing 12-month closings have only dropped by 15%. In March 2023, Atlanta only had 1.6 months of supply (normal is 6 months). Inventory is expected to increase slowly during the spring selling season.
The Atlanta metro area still has an annual housing deficit of 62,000 units, meaning that if this number of units suddenly became readily available for purchase, they would be sold within the next year at the current absorption rate.
Looking ahead, MarketNsight predicts that the months of supply will not exceed three months this year, and inventory and months of supply are expected to remain below pre-pandemic levels for the rest of 2023.
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About MarketNsight:
MarketNsight currently serves 35+ cities in nine states – Alabama, Florida, Georgia, Louisiana, North Carolina, South Carolina, Tennessee, Texas and Virginia. Look for the addition of more cities soon!
To schedule a demonstration of the MarketNsight Feasibility Matrix® or Mortgage Matrix®, call 770-419-9891 or email info@MarketNsight.com. For information about MarketNsight and John Hunt’s upcoming speaking engagements, visit www.MarketNsight.com.