The Greensboro, NC market saw an increase in closings of new homes in September year-over-year, and with a stronger rise in comparison with August 2015, the market seems to be strengthening. New home closings saw a climb of 16.7% from the year earlier to 84. This followed a 5.3% hike year-over-year in August.
A total of 998 new homes were sold during the 12 months that ended in September, up from 986 for the year that ended in August.
Compared to a year earlier, new home closings as a percentage of total closings stayed the same at 8.5%. Closings of new and existing homes gained year-over-year in September after also rising in August year-over-year.
Pricing and Mortgage Trends
In September, the average price of newly sold homes rose 1.3% year-over-year to $229,985 per unit. This boost is smaller than the 3.3% hike in August year-over-year.
For newly sold homes, the average mortgage size jumped year-over-year along with new home prices. In September 2015, there was a 2.0% surge in the average mortgage size, reaching $210,563. Average mortgage size grew 4.1% in August 2015 from a year earlier.
Other Market Trends
The percentage of new home closings belonging to single-family homes has risen from last year while the portion of new home closings belonging to attached units has dropped. Single-family home closings rose from three quarters of new closings in September 2014 to 78.6% of closings in September 2015. At the same time, the share of new home closings belonging to attached units fell to 21.4% of closings from a quarter of closings.
There was a 8.1% drop year-over-year in the average unit size of newly sold homes to 2,245 square feet in September 2015. This fall was opposite the price boost, a pattern also seen in August 2015 when the average size of newly sold homes dropped 11.1% to 2,425 square feet. The average size of newly sold homes moved from 2,727 square feet in August 2014 to 2,425 square feet in August 2015.
Foreclosures and real estate owned (REO) closings declined in September from a year earlier, but stayed a drag on the market. Together, foreclosures plus REO closings represented 27.7% of existing home closings, down from 28.7% a year earlier. The percentage of existing home closings involving foreclosures went from 15.4% in September 2014 to 15.0% in September 2015 and REO closings moved from 13.2% of existing home closings in September 2014 to 12.8% in September 2015.