Atlanta Home Connections

Existing home sales rose in September, likely due to a brief decline in mortgage rates. First-time buyers made up just 28% of sales, the lowest level since July 2015. The low percentage is most likely due to the competitive market, competing for the same properties. Sellers have the advantage with multiple offers
On the rental side: Single-family rents are surging, and investors are flooding the market. August rents rose 9.3% year over year, up from a 2.2% year-over-year increase in August 2020.

Housing News:
The FHFA reported a monthly home price increase of 1.8% and year-over-year growth of 15.7% for April. Both figures broke previous records.
May pending home sales rose to the highest level since 2005. The increase could signal some relief from the inventory shortage that has driven prices to record highs.
Economy:
Consumer confidence hit a 16-month high in June and was also revised upward for May, as the growing labor market and reopening economy offset inflation concerns.
Companies hired nearly a million new workers in May, according to ADP. This was the largest gain since last June, led by 440,000 new hires in leisure and hospitality.

Update Housing Snapshot
Listings for 3 straight months and for the first time in 5 months, sales volume has declined 2.7% in the 12 county Metro Atlanta area and 2.5% in the core counties. Inventory remains low, with active listings off 59% compared to last year. The low inventory since January 2021 continues to drive prices up by 24%. Median sales price increased from $275,000 to $341,000 in May.

Market this week.
Existing home sales fell for the third straight month in April. Demand remained strong, but sales were constrained by inventory, which was down 20%.
Pending home sales also fell in April. Elevated asking prices, reflecting the limited supply of homes on the market, are making properties less affordable and curbing sales.
Home price appreciation is accelerating as buyers continue to fight for limited inventory. Case-Shiller showed a year-on-year gain of 13.3% in March, up from 12% in February.

Atlanta Home Connections updated their phone number.

Housing news week of 3/18
Housing starts fell 10.3% to a 6-month low during February's cold weather. It was likely a temporary setback for a housing market with lean inventory and strong demand.