The share of new homes in the Atlanta housing market surged 89% year over year in March as higher interest rates rose and resale inventory declined, MarketNsight reported. 

“Not surprisingly, new-home market share went positive year over year beginning in June 2022 — precisely when rates crossed … 5.25%,” John Hunt, principal and chief analyst, 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.” 

The real estate data and analysis firm predicted that new homes would continue to see market-share gains in 2023 as elevated interest rates keep would-be home sellers on the sidelines. 

“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,” Hunt said. 

Keeping with seasonal trends, Atlanta’s overall inventory declined through March. However, inventory fell at a faster rate than closings, resulting in a decrease in the months of supply. And despite a 34% decrease in inventory since October 2022, trailing 12-month closings only declined 15%. Atlanta had just 1.6 months of supply in March, compared to a normal level of 6 months.