As Atlanta enters 2015, it does so with big expectations. A list published by CNN projected that the city would lead the country with a pretty sizable increase in housing prices — some experts are predicting up to 11 percent. With that in mind, take a look at what the last year held for the city’s real estate market.
Housing Prices in 2014
Overall, 2014 was a good year for Atlanta. For the most part, prices increased and foreclosures decreased, all while sales increased and mortgage rates remained very low. It was definitely better than 2013 when the city underperformed compared to most of the rest of the country. Over the course of the entire year, prices rose about 4.5 percent, beating out most other cities in the Southeastern United States. It did experience a bit of a winter slump, however. The city saw a slight decrease in late fall, but this is standard for that time of year.
New homes saw a fairly large price increase. In August 2014, new construction sold for prices 8.5 percent higher than those in August 2013. The average price per new home was $311,301. The average mortgage size for new homes also increased.
Building and Buying Homes in 2014
According to the National Association of Home Builders, the majority of builders — 54 percent —report that they see the real estate industry moving forward rather than backward as of the third quarter. However, that number is down from 58 percent in the second quarter of 2014. That said, more new homes are selling compared to 2013. In 2014, 9.6 percent of closings were new home compared to 2014’s 8.9 percent.
As for homes that already exist, pending sales numbers are up from 2013. Like home prices, they dropped during the fall. The National Association of REALTORS® blames rising rent costs for the increase but says a lack of increase in wages are making it harder for people to afford to buy a home. The month of August also saw a major decrease in the overall number of house closings compared to 2013.
Commercial Real Estate and Other Interesting Changes
The Atlanta Business Chronicle points out that 2014 was also a big year for Atlanta’s commercial real estate scene, particularly large projects that have a major impact on the city. The publication cited the opening of Buckhead Atlanta, plans for a symphony center on 14th Street, State Farm’s announcement that it is building one of the largest office developments in Metro Atlanta, the development of SunTrust Park in Cobb County, and the sale of the Shops Around Lenox as examples that illustrate this sentiment.
Attached unit homes increased from 14.9 percent of all closings in August 2013 to 18.6 percent in August 2014. On the other hand, the sale of single-family homes decreased. The square footage of newly purchased homes also decreased.
If you want to find your new home in 2015, contact Atlanta Fine Homes Sotheby’s International Realty at 404.237.5000.