Atlanta Offers Great Options for New Home Buyers
The new home market in metro Atlanta continues to improve with nearly 20,000 homes built in 2016 alone.
“The Atlanta housing market offers great options to homebuyers,” says David Ellis, executive vice president of the Greater Atlanta Home Builders Association. “We have a great diversity in product types and markets that can match the needs of families who are looking to own a new home. It’s a great time to buy in Atlanta.”
Ellis goes on to say that the entire region experienced growth in 2016. “Every county has seen increases in building permits. The northern counties still have been the areas where the highest number of new homes are being built.”
As for 2017, the association is “very positive” about the growth in the market. “Interest rates continue to remain low and home values in Atlanta continues to rise,” he adds. “As a result, housing remains a great investment in the Atlanta region.”
Supply Finally Meeting Demand for Atlanta New Homes
CFO Stephen Palmer with Home South Communities, which builds homes in the north Atlanta suburbs, specifically in DeKalb, Cobb, Gwinnett, Forsyth and Hall counties, in addition to north Fulton County, agrees with Ellis. “2016 was a very good year,” he says. “We were up about 50 percent on closings and sales in 2016.”
Home South Communities is expected to close on 200 homes with about $90 million in revenues for the year.
“2016 was a transitional year in Atlanta, where new home supply finally ramped up to meet pent-up demand,” Palmer says, adding that he is expecting an even better year in 2017. “Buyers in 2017 will have even more product to choose from in all locations as the market continues to regain its footing from the Great Recession. Home prices are back to pre-recession levels, but still represent a great value relative other more expensive metro areas across the country… We expect to increase closings by 80 percent in 2017 as new projects open up.”
Atlanta Home Values Continue to Rise
Rocklyn Homes’ Jack Brewster, the director of sales and land acquisition, says that compared to the last few years, he, too, has seen a steady incline in the housing market to where housing values are more in line with where they should be. “The market is healthier, mortgage rates are below 4 percent,” he says. “We are headed in the right direction and see home values continuing to rise as demand steadily outpaces supply.”
Brewster adds that Rocklyn Homes had a banner year in 2016. “We experienced record sales and closings, selling more than 670 homes as of Dec. 1, 2016. The Atlanta real estate market has been very active this year and when you build a quality home at an affordable price, homebuyers take notice. It was the best time in the history of our company, and we are looking forward to another great year for Rocklyn Homes in 2017.”