New home closings in the Fayetteville, NC market declined year-over-year in September, and the percentage fall that was steeper than August 2015 gave implications of worsening market conditions. Closings slid 66.1% from a year earlier to 19. This came after a 64.6% fall year-over-year in August.
A total of 528 new homes were sold during the 12 months that ended in September, down from 565 for the year that ended in August.
As a percentage of overall housing closings, new home closings made up 4.8%. This is down from the 11.9% of closings a year earlier. Closings of new and existing homes sank year-over-year in September after also falling in August year-over-year.
Pricing and Mortgage Trends
In September, the average price of newly sold homes dropped 3.7% year-over-year to $214,526 per unit. This drop is a drop off from the 5.4% decline in August from a year earlier.
The average mortgage size on newly sold homes saw a fall year-over-year in contrast to new home prices. In September 2015, there was a 3.2% decline in the average mortgage size on new homes to $204,755. Average mortgage size jumped 2.6% in August 2015 from a year earlier.
Other Market Trends
Closings of attached units, as a percentage of new home closings, have gained from last year while closings of single-family homes have dipped. Attached unit closings grew from no part of all closings in September 2014 to 5.3% of closings in September 2015. Conversely, the share belonging to single-family homes dropped to 94.7% of closings from all of closings.
The average unit size of newly sold homes rose 3.5% year-over-year to 2,585 square feet in September 2015. The average size of newly sold homes moved from 2,640 square feet in August 2014 to 2,379 square feet in August 2015.
Foreclosures and real estate owned (REO) closings decreased in September from a year earlier, but stayed a drag on the market. Together, foreclosures plus REO closings made up 44.2% of existing home closings, down from 48.3% a year earlier. The percentage of existing home closings involving foreclosures fell to 19.3% in September from 25.7% a year earlier while REO closings as a percentage of existing home closings climbed to 24.9% from 22.6%.