New home closings gained year-over-year in December in the Burlington, NC market, snapping back from a decline in November 2015. Closings rose 20.7% from a year earlier to 35. This came after a 26.9% decline year-over-year in November.
A total of 385 new homes were sold during the 12 months that ended in December, up from 379 for the year that ended in November.
Of the total number of closings, new home closings made up 17.3%. A year ago, new home closings represented 16.9%. Following a fall in November year-over-year, closings of new and existing homes climbed year-over-year in December.
Pricing and Mortgage Trends
The average per-unit price of newly sold homes gained year-over-year to $244,471 in December, up 26.8% from last year. This hike is higher than the 1.8% gain in November year-over-year.
For newly sold homes, the average mortgage size saw a hike year-over-year along with new home prices. In December 2015, there was a 19.8% rise in the average mortgage size, reaching $208,303. Average mortgage size gained 3.4% in November 2015 from a year earlier.
Other Market Trends
As a share of new home closings, single-family home closings have climbed from last year while the share belonging to attached units has fallen. The share of new home closings belonging to single-family homes jumped from 82.8% in December 2014 to 88.6% of closings in December 2015. At the same time, the share of new home closings belonging to attached units fell to 11.4% of closings from 17.2% of closings.
Foreclosures and real estate owned (REO) closings continued to rise in December from a year earlier and remained a drag on the market. Combined, foreclosures plus REO closings represented 33.5% of existing home closings, above 25.9% a year earlier. The percentage of existing home closings involving foreclosures rose to 15.0% in December from 13.3% a year earlier while REO closings as a percentage of existing home closings climbed to 18.6% from 12.6%.