In the Durham, NC market in February, new home closings jumped year-over-year, moving north after a drop in January 2016. There was a 28.2% rise in new home closings from a year earlier. This followed a 15.5% fall year-over-year in January.
A total of 1,781 new homes were sold during the 12 months that ended in February, up from 1,750 for the year that ended in January.
Out of all housing closings, new home closings made up 23.1%. This is better than the 20.0% of closings a year earlier. Closings of new and existing homes increased year-over-year in February following a decline in January year-over-year.
Pricing and Mortgage Trends
For newly sold homes, the average price jumped 9.6% year-over-year in February to $325,757 per unit. This boost compares to a 9.3% drop in January from a year earlier.
Average mortgage size on new homes went from $237,795 in February 2015 to $239,154 in February 2016. Average mortgage size sank 3.7% in January 2016 from a year earlier.
Other Market Trends
There has been little change in the composition of the market with regard to the types of properties sold. From a year ago, single-family home closings have moved from 71.8% of new home closings to 70.9% of closings while attached units have gone from 28.2% of closings to 29.1% of closings.
The average unit size of newly sold homes dropped 8.3% year-over-year to 2,026 square feet in February 2016. In January, the average size of new homes sold went from 2,416 square feet a year earlier to 3,195 square feet.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in February, but did not appear to be dragging the market. Combined, foreclosures plus REO closings made up 15.1% of existing home closings, below 22.2% a year earlier. The percentage of existing home closings involving foreclosures went from 8.6% in February 2015 to 8.1% in February 2016 and REO closings as a percentage of existing home closings slid to 7.0% from 13.6% a year earlier.