In the Greensboro, NC market in March, new home closings dropped year-over-year, and there were signs of weakening market conditions with a percentage decline steeper than that of February 2016. New home closings saw a 11.2% fall from a year earlier to 79. This was after the housing market saw a 1.6% decline year-over-year in February.
A total of 1,005 new homes were sold during the 12 months that ended in March, down from 1,015 for the year that ended in February.
New home closings accounted for 8.2% of overall housing closings. This is down from the a year earlier when new home closings accounted for 9.4% of total closings. For new and existing homes, closings grew year-over-year in March after also increasing in February year-over-year.
Pricing and Mortgage Trends
In March, the average per-unit price of new homes sank by 6.3% year-over-year to $230,368. This decline compares to a 1.4% hike in February year-over-year.
For newly sold homes, the average mortgage size saw a decline year-over-year in contrast to new home prices. It slid to $207,859 in March, a 3.0% fall. In February 2016, average mortgage size jumped 1.4% 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 climbed from 70.8% of new closings in March 2015 to 79.7% of closings in March 2016. At the same time, the share of new home closings belonging to attached units fell to 20.3% of closings from 29.2% of closings.
The average unit size of newly sold homes declined 15.1% year-over-year to 2,067 square feet in March 2016. In February, the average size of new homes sold went from 2,483 square feet a year earlier to 2,031 square feet.
Foreclosures and real estate owned (REO) closings fell in March from a year earlier, but remained a burden on the market. Combined, foreclosures plus REO closings made up 26.4% of existing home closings, below 29.6% a year earlier. The percentage of existing home closings involving foreclosures went from 13.3% in March 2015 to 13.9% in March 2016 and REO closings as a percentage of existing home closings dropped to 12.5% from 16.3% a year earlier.