Closings of new homes rose year-over-year in December in the Clarksville, TN-KY market, and the percentage rise was greater than November 2015, giving hints of improving market conditions. There was a 19.1% boost in new home closings from a year earlier. This came after a 4.2% boost year-over-year in November.
A total of 651 new homes were sold during the 12 months that ended in December, up from 642 for the year that ended in November.
New home closings accounted for 9.8% of overall housing closings. This is an increase on a percentage basis, as new home closings were 8.5% of total closings a year ago. Closings of new and existing homes gained year-over-year in December following a fall in November year-over-year.
Pricing and Mortgage Trends
The average per-unit value of new homes slid year-over-year to $218,379 in December, a drop of 5.2% from a year earlier. This decline is larger than the 3.4% drop in November from a year earlier.
For newly sold homes, the average mortgage size fell year-over-year in contrast to average price of new homes. Average mortgage size fell by 2.0% from a year earlier, settling at $221,395 in December. In November 2015, average mortgage size fell 4.9% 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 jumped from 97.9% of new closings in December 2014 to all of closings in December 2015. Meanwhile, attached units as a percentage of all new home closings declined to no part of closings from 2.1% of closings.
For all new homes sold, the average unit size sank 8.6% year-over-year to 2,060 square feet in December 2015. The average size of newly sold homes moved from 2,090 square feet in November 2014 to 1,694 square feet in November 2015. A decrease in both the average size and price of newly sold homes was also seen in November 2015 when the average size increased 18.9% to 1,694 square feet.
Foreclosures and real estate owned (REO) closings decreased in December from a year earlier, but stayed a drag on the market. Combined, foreclosures plus REO closings accounted for 29.0% of existing home closings, below 35.0% a year earlier. The percentage of existing home closings involving foreclosures slid to 9.7% in December from 14.6% a year earlier while REO closings as a percentage of existing home closings declined to 19.3% from 20.4% a year earlier.