The Nashville, TN market saw a rise in new home closings in September year-over-year, but the percentage bump, which was less than August 2015, seemed to suggest market leveling. There was a 30.2% rise in new home closings from a year earlier. This followed a 34.0% rise year-over-year in August.
A total of 5,662 new homes were sold during the 12 months that ended in September, up from 5,538 for the year that ended in August.
As a percentage of overall housing closings, new home closings represented 12.6%. This is a bump from 11.3% of closings a year earlier. For new and existing homes, closings gained year-over-year in September after also increasing in August year-over-year.
Pricing and Mortgage Trends
Average price of newly sold homes had a 4.8% boost year-over-year to $335,823 per unit in September. This bump is better than the 4.0% hike in August year-over-year.
The average mortgage size on new homes moved north year-over-year along with new home prices. It grew to $276,826 in September, a 6.5% boost. Average mortgage size climbed 3.4% in August 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. Single-family home closings grew from 81.0% of new closings in September 2014 to 84.5% of closings in September 2015. Meanwhile, attached units as a percentage of all new home closings declined to 15.5% of closings from 19.0% of closings.
For all new homes sold, the average unit size dropped 17.8% year-over-year to 2,210 square feet in September 2015. For newly sold homes, an average size drop contrasting with an average price bump was also seen in August 2015 when the average size of newly sold homes declined 13.6% to 2,334 square feet. In August, the average size of new homes sold went from 2,701 square feet a year earlier to 2,334 square feet.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in September, but did not appear to be dragging the market. Combined, foreclosures plus REO closings represented 13.7% of existing home closings, below 15.6% a year earlier. The percentage of existing home closings involving foreclosures fell to 6.2% in September from 7.5% a year earlier and REO closings moved from 8.1% of existing home closings in September 2014 to 7.6% in September 2015.