The Chattanooga, TN market saw a drop in new home closings year-over-year in April, and the percentage drop was more severe than March 2016, indicating the market may be worsening. New home closings saw a 63.6% decline from a year earlier to 16. This followed a 45.0% fall year-over-year in March.
A total of 400 new homes were sold during the 12 months that ended in April, down from 428 for the year that ended in March.
As a percentage of overall housing closings, new home closings represented 1.7%. This is down from the 4.7% of closings a year earlier. Following a year-over-year rise in March, closings of new and existing homes sank year-over-year in April.
Pricing and Mortgage Trends
In April, there was a 35.2% fall year-over-year in the average per-unit price of newly sold homes, settling at $207,840. This fall compares to a 9.3% rise in March year-over-year.
For newly sold homes, the average mortgage size declined year-over-year in contrast to average price of new homes. In April 2016, average mortgage size on new homes sold was $197,965, down 23.1% from a year earlier. In March 2016, average mortgage size rose 18.2% from a year earlier.
Other Market Trends
As a percentage of new home closings, attached unit closings have climbed from last year while single-family home closings have dropped. Attached unit closings climbed from no part of all closings in April 2015 to 12.5% of closings in April 2016. Meanwhile, single-family home closings as a percentage of all new home closings declined to 87.5% of closings from all of closings.
There was a 22.9% fall year-over-year in the average unit size of newly sold homes to 1,598 square feet in April 2016. In March, the average size of new homes sold went from 2,020 square feet a year earlier to 1,646 square feet.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in April, but did not appear to be dragging the market. Foreclosures and REO closings, taken together, accounted for 22.1% of existing closings, lower than 30.2% a year earlier. The percentage of existing home closings involving foreclosures fell to 10.1% in April from 11.8% a year earlier while REO closings as a percentage of existing home closings sank to 12.0% from 18.4% a year earlier.