By the Numbers
Builder confidence was steady in May, carrying over April’s reading of 83 for another month, according to the most recent National Association of Home Builders/Wells Fargo Housing Market Index.
Housing inventory in the Atlanta area, meanwhile, remained significantly below year-ago levels in April.
The number of buyers who locked in mortgage rates for second homes spiked to 178% year over year in April, according to a report from Redfin.
In Atlanta, the median sales price of a single-family home jumped 18.4% on a year-over-year basis to $279,300, the National Association Realtors said, citing its quarterly report.
The employment numbers for March were revised down as well. The most recent data indicate a 770,000 increase in jobs for the month, compared to the previously reported increase of 916,000.
Lumber prices have tripled over the past 12 months, driving up the price of the average new single-family home by $35,872. NAHB hopes to alleviate the situation by meeting with the White House, lawmakers and others.
“This is a sign that the competitive purchase market, driven by low housing inventory and high demand, is pushing prices higher and weighing down on activity.” — Mortgage Bankers Association Associate Vice President of Economic and Industry Forecasting Joel Kan.
Low mortgage rates and low inventory levels are making the demand for homebuilding more attractive to buyers in Atlanta.
The NAHB attributed the monthly increase in its construction spending index to single-family construction and single-family improvements, both of which rose by 2% on a monthly basis. Multifamily construction, meanwhile, declined 0.3% after falling 0.9% in February.
Georgia MLS’s monthly survey of the 12-county metro area also found that sales volume was strong, up 44.2% year-over-year to $2.64 billion.