The Nashville, TN market saw an increase in closings of new homes in November year-over-year, and there were signals of strengthening market conditions as the percentage gain was an greater than October 2015. New home closings saw a 9.6% boost from a year earlier to 458. In comparison, new home closings in the same month last year saw a 7.6% hike year-over-year in October.
A total of 5,711 new homes were sold during the 12 months that ended in November, up from 5,671 for the year that ended in October.
As a percentage of overall housing closings, new home closings accounted for 14.9%. This is better than the 13.6% of closings a year earlier. After rising in October from a year earlier, closings of new and existing homes stayed steady in November.
Pricing and Mortgage Trends
From November 2014 to November 2015, the average price of newly sold homes went from $332,956 to $330,892. This followed a 2.9% boost in October year-over-year.
The average mortgage size on newly sold homes increased year-over-year in contrast to the average price of new homes. The average mortgage size saw a 4.8% hike year-over-year to $286,059 in November. In October 2015, average mortgage size on newly sold homes saw a 1.1% hike year-over-year from a year earlier.
Other Market Trends
As a percentage of new home closings, attached unit closings have risen from last year while single-family home closings have dropped. The share of new home closings belonging to attached units climbed from 15.1% of closings in November 2014 to 17.7% of closings in November 2015. At the same time, the share belonging to single-family homes declined to 82.3% of closings from 84.9% of closings.
For all new homes sold, the average unit size slid 34.3% year-over-year to 1,813 square feet in November 2015. In October, the average size of new homes sold went from 2,677 square feet a year earlier to 1,967 square feet.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in November, but did not appear to be dragging the market. Foreclosures and REO closings, taken together, accounted for 14.4% of existing closings, lower than 22.7% a year earlier. The percentage of existing home closings involving foreclosures went from 7.7% in November 2014 to 8.0% in November 2015 and REO closings as a percentage of existing home closings dropped to 6.4% from 15.0% a year earlier.