Pending new home sales in Atlanta will end the year up 20% and new home permits up 6%, according to MarketNsight’s biannual MarketWatch Atlanta report.
Atlanta also dropped a spot in 2020 to become the No. 4 housing market in the country.
“Again, this isn’t because of lack of demand,” MarketNsight and ViaSearch President John Hunt said in a press release. “It is due to the fragmentation of the market, entitlements and just the extreme difficulty of bringing projects to market. For as strong as 2020 has been, the Atlanta market is still only at 47% of its peak in 2006 (down 53%).”
Hunt noted that new home prices were up 12% in November from the same time in 2019. “We are starting to see some pricing power in new homes,” he said. “Resale list prices are out of control, and we are seeing 21% price increases in resale homes fueled by multiple offers and lack of supply.”
The report also predicts strong growth in the Southeast, particularly in Augusta, Raleigh and Savannah.