In the Winston-Salem, NC market in September, closings of new homes increased year-over-year, but with an increase less steep than that of August 2015, the market seemed to be showing signs of leveling out. There was a 8.7% rise in new home closings from a year earlier. This was after the housing market saw a 48.3% jump year-over-year in August.
A total of 796 new homes were sold during the 12 months that ended in September, up from 790 for the year that ended in August.
New home closings represented 11.7% of overall housing closings. This is a rise from 9.9% of closings a year earlier. Following a year-over-year increase in August, closings of new and existing homes dropped year-over-year in September.
Pricing and Mortgage Trends
Average price of newly sold homes had a 7.6% drop year-over-year to $184,727 per unit in September. This decline is a drop off from the 21.2% fall in August from a year earlier.
The average mortgage size on newly sold homes moved south year-over-year in contrast to new home prices. In September 2015, the average mortgage size on newly sold homes saw a 4.7% drop from a year earlier. In August 2015, average mortgage size sank 19.6% from a year earlier.
Other Market Trends
The share of new home closings made up by attached units has risen while the share belonging to single-family homes has fallen. Attached unit closings gained from 15.9% of all closings in September 2014 to 18.7% of closings in September 2015. Conversely, the share belonging to single-family homes dropped to 81.3% of closings from 84.1% of closings.
There was a 3.9% hike year-over-year in the average unit size of newly sold homes to 1,824 square feet in September 2015. The average size of newly sold homes moved from 2,190 square feet in August 2014 to 2,458 square feet in August 2015. For newly sold homes, an average size boost contrasting with an average price decline was also seen in August 2015 when the average size of newly sold homes slid 12.2% to 2,458 square feet.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in September, but did not appear to be dragging the market. Out of all existing home closings, foreclosures combined with REO closings made up 24.6% of closings, below 31.6% a year earlier. The percentage of existing home closings involving foreclosures declined to 11.9% in September from 17.5% a year earlier while REO closings as a percentage of existing home closings sank to 12.8% from 14.1% a year earlier.