MarketNsight Reports Atlanta Pending Sales Up YTY 17%, No Moderation in Sight
Monday, August 31st, 2020
MarketNsight reports August Atlanta pending sales are up 46% over 2019 sales for week one and, so far, week two looks to be up 50% over last year. New pending home sales are up in Atlanta metro areas 17% year to date versus last year even as COVID-19 (coronavirus) cases continue to rise.
“As interest rates continue to drop, it has stimulated unprecedented demand even amid a pandemic,” MarketNsight and ViaSearch President John Hunt said. “Interest rates matter; it has also mitigated many of the affordability issues we were facing with the depletion of distressed lots and rising development and material costs.”
Most experts believe rates will remain low for a while, even into next year, and Hunt agrees.
“However, rates will eventually go back up,” Hunt said. “We should use the time in between wisely to continue product innovation and to aggressively seek zoning changes that allow for more attainable housing choices.”
New pending sales have now been positive year to year for a total of 23 weeks and negative year to year a total of seven weeks. Of those negative weeks, six coincide with the pandemic – March week two through the third week of April.
August pending new home sales are always down from July due to seasonality. The second week of August 2020 will have 350 new pending sales versus 229 for the second week of August the previous year.
New homes continue to outperform resale in year to year pending sales increases. Resale pending sales have been up an average of 19% since turning positive. New pending sales have been up an average of 32% since turning positive.
This same trend holds true for all cities tracked by MarketNsight. All cities turned positive in year to year new pending sales anywhere from the first week in April to the third week of May. Nashville continues to set records with new pending sales up more than 200% for July 2020 over July last year. Cities such as Augusta, Charleston, South Carolina and Birmingham, Alabama also see phenomenal YTY gains in July this year.
MarketNsight is focused on helping home builders and developers make smart decisions related to purchasing land and pricing product. Its groundbreaking Feasibility Matrix® systemizes the decision-making process and creates a one-stop-shop for gauging new home community feasibility including ranking by builder and subdivision and developed lot and raw land sales.
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