New homes are being built again in Metro Atlanta! Our area was one of the fastest growing markets in the nation for new home construction. But the great recession and associated housing bust changed that dramatically in the last 5 years. New construction fell from the peak of 60,000 starts to less than 5,000 in 2009. There were many foreclosures and short sales available at prices that were significantly less than their replacement costs. So builders could not buy the land and build homes to compete. But foreclosures and short sales have slowed significantly and the low inventory environment is causing home values to rise in many of our local markets. Builders that are able to get great deals on land can now build new homes that are competitive with the rest of the market.
Last week, the National Association of Home Builders reported that builder confidence was the highest since 2006. The NAHB Housing Market Index has shown positive gains for seven months in a row. “While our confidence gauge has yet to breach the 50 mark -- at which point an equal number of builders view sales conditions as good versus poor -- we have certainly made substantial progress since this time last year, when the HMI stood at 19,” observes NAHB Chief Economist David Crowe.
Low mortgage rates are helping drive the demand for homes. Last week, Freddie Mac reported that mortgage rates had fallen to the lowest levels since they began recording statistics back in 1971. We expect to see a steady rise in construction over the next few years. As home values rise, more builders will be able to make the math work and banks will start lending again. In the next 3-5 years, we expect to see 25,000 new home starts again.
Searching online for new homes is a little different than other properties. There are no comprehensive sources that show all the new home communities and their associated properties that are available for sale. This is especially true for smaller projects. There are also pre-sale options and partially constructed properties that may not be listed. Our websites show all new home properties that are listed in all 6 local Multiple Listing Services – so we give you the best search available. In addition, our Prudential Georgia Realty New Homes Division is the largest of any brokerage and represents many wonderful new home communities. If you are interested in a new home, we know where they are and would be happy to help.
If you or someone you know would like to learn more about the New Home communities in your area, please contact us today. We have access to proprietary resources that are not available to the public and can help you make the best real estate decisions.
Click here to view Dacula neighborhoods and MLS listings in each, and visit my new website www.hankbailey.prudentialgeorgia.com to create an advanced MLS search including foreclosures, short sales, new construction, and by schools!
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