The Richmond, VA market saw a drop in new home closings year-over-year in November, but there were signs the market may be leveling out from a percentage decline less than October 2015. Closings declined 4.0% from a year earlier to 119. In comparison, new home closings in the same month last year saw a 25.3% fall year-over-year in October.
A total of 1,772 new homes were sold during the 12 months that ended in November, down from 1,777 for the year that ended in October.
Of 1,205 total closings, 119 were of new homes. This is an increase on a percentage basis, as new home closings were 8.8% of total closings a year ago. After rising year-over-year in October, closings of new and existing homes sank year-over-year in November.
Pricing and Mortgage Trends
In November, the average per-unit price of new homes dropped by 4.9% year-over-year to $377,895. This decline is larger than the 3.3% drop in October from a year earlier.
There was a surge year-over-year in the average mortgage size on new homes in contrast to new home prices. Average mortgage size jumped 1.0% to $317,906 in November from a year earlier. Average mortgage size declined 4.2% in October 2015 from a year earlier.
Other Market Trends
As a share of new home closings, single-family home closings have climbed from last year while the share belonging to attached units has fallen. Single-family home closings climbed from 76.6% of new closings in November 2014 to 96.6% of closings in November 2015. At the same time, the share of new home closings belonging to attached units fell to 3.4% of closings from 23.4% of closings.
For all new homes sold, the average unit size increased 11.5% year-over-year to 3,113 square feet in November 2015. In October, the average size of new homes sold went from 2,798 square feet a year earlier to 2,703 square feet.
Foreclosures and real estate owned (REO) closings decreased in November from a year earlier, but remained a drag on the market. Together, foreclosures plus REO closings accounted for 25.1% of existing home closings, down from 28.6% a year earlier. The percentage of existing home closings involving foreclosures slid to 12.0% in November from 15.0% a year earlier and REO closings moved from 13.7% of existing home closings in November 2014 to 13.2% in November 2015.