The following articles contain important information about the current trends in the real estate industry. 

Two reports from the National Association of REALTORS®’ Research Division that give insight to the current market are available on GAR’s Web site. The Local Market Report for Q1 for the Atlanta-Sandy Springs-Marietta area shows that prices are lower than in Q1 2009, and that despite the fact that unemployment has risen since last year, Atlanta’s employment situation is better than most markets in the U.S. Also, Atlanta is affordable both currently and historically.

The Survey of REALTOR® Sentiment for NAR’s Region 5, which includes Georgia, Alabama, Florida, Mississippi, Puerto Rico and the Virgin Islands, gives the REALTOR® perspective on the current market. Insights include frustrations over lack of available financing, unrealistic expectations of buyers, and high insurance rates. Almost half of the survey respondents worked with first-time buyers, and just under a quarter of buyers purchased a foreclosure.

Both reports can be found on this page under the "Downloadable Articles" heading on the right-hand side of the page.

A Snapshot of Monthly Housing Indicators
Updated June 24, 2010

Pending Home Sales Index 
The Pending Home Sales Index, a forward-looking indicator, rose 6.0 percent to 110.9 based on contracts signed in April, from an upwardly revised 104.6 in March, and is 22.4 percent higher than April 2009 when it was 90.6. That follows gains of 7.1 percent in March and 8.3 percent in February. Pending home sales in the South slipped 0.6 percent to an index of 123.9, but is 31.3 percent higher than a year ago.

Existing-Home Sales 
Existing-home sales remained at elevated levels in May on buyer response to the tax credit, characterized by stabilizing home prices and historically low mortgage interest rates. Existing-home sales were at a seasonally adjusted annual rate of 5.66 million units in May, down 2.2 percent from an upwardly revised surge of 5.79 million units in April. May closings are 19.2 percent above the 4.75 million-unit level in May 2009; April sales were revised to show an 8.0 percent monthly gain. In the South, existing-home sales increased 0.5 percent to an annual level of 2.15 million in May and are 22.9 percent above a year ago. The median price in the South was $159,000, up 1.0 percent from May 2009. In the greater Metro Atlanta are, the median price for existing homes rose from $121,000 in May 2009 to $124,900, for a 3.2% increase in price and a 9.3% increase in sales.

New-Home Sales 
Sales of new single-family houses in May 2010 were at a seasonally adjusted annual rate of 300,000. This is 32.7 percent below the revised April rate of 446,000 and is 18.3 percent below the May 2009 estimate of 367,000. (Sources: U.S. Census Bureau and the Department of Housing and Urban Development)

Housing Starts & Completions
Privately-owned housing starts in May were at a seasonally adjusted annual rate of 593,000. This is 10.0 percent below the 10.3% revised April estimate of 659,000, but is 7.8 percent above the May 2009 rate of 550,000. Single-family housing starts in May were at a rate of 468,000; this is 17.2 percent below the revised April figure of 565,000. The May rate for units in buildings with five units or more was 112,000.

   Privately-owned housing completions in May were at a seasonally adjusted annual rate of 687,000. This is 7.4 percent below the revised April estimate of 742,000 and is 15.4 percent below the May 2009 rate of 812,000. Single-family housing completions in May were at a rate of 507,000; this is 7.8 percent below the revised April rate of 550,000. The May rate for units in buildings with five units or more was 175,000. (Source: U.S. Census Bureau)

Housing Affordability 
The affordability index was 167.4 for the U.S. and 175.9 in the South for April. The HAI is a broad measure of housing affordability using consistent values and assumptions over time, which examines the relationship between home prices, mortgage interest rates and family income; tracking began in 1970. 

Mortgage Rates 
The 30-year fixed mortgage rate was 4.75% for week ending June 17.

Employment
Total nonfarm payroll employment grew by 431,000 in May, reflecting the hiring of 411,000 temporary employees to work on Census 2010, theU.S. Bureau of Labor Statistics reported today. Private-sector employment changed little (+41,000). Manufacturing, temporary help services, and mining added jobs, while construction employment declined. The unemployment rate edged down to 9.7 percent. (Source: Dept. of Labor Statistics)

Other Indicators
GDP - The 3.2% rise in GDP (annualized) in the first quarter confirms that the U.S. economy continues to recover but the growth path ahead will remain bumpy. While growth is less than half of the robust 5.6% pace in the last quarter of 2009, the underlying dynamic is actually healthier and better balanced: More of the rise in GDP came from domestic demand and less from an inventory correction. Still, the strength and durability of this recovery remain in question, as the economy sails into strong headwinds over the next few quarters. The boost from the fiscal stimulus is fading. Households remain heavily in debt and residential investment showed a large downturn. (Source: WSJ – 4/30/2010)

Consumer Confidence - The Conference Board Consumer Confidence Index® increased in May, its third consecutive monthly gain. The Index now stands at 63.3 (1985=100), up from 57.7 in April. The Present Situation Index increased to 30.2 from 28.2. The Expectations Index improved to 85.3 from 77.4 last month.  (Source: The Conference Board)

Consumer Price Index – Down .2% in May
Producer Price Index - Down .3% in May
Retail Sales – Down 1.2% in May

Source: National Association of REALTORS®, unless otherwise indicated.