In March, the Virginia Beach, VA market saw a fall year-over-year in new home closings, and the percentage decline was steeper than February 2016, suggesting the market may be worsening. New home closings saw a 58.5% decline from a year earlier to 76. This was after the housing market saw a 34.8% fall year-over-year in February.
A total of 1,727 new homes were sold during the 12 months that ended in March, down from 1,834 for the year that ended in February.
Out of all housing closings, new home closings accounted for 3.3%. This is a drop 7.3% of closings a year earlier. Following a year-over-year increase in February, closings of new and existing homes fell year-over-year in March.
Pricing and Mortgage Trends
The average price of newly sold homes fell 2.4% year-over-year in March to $337,848 per unit. This decline compares to a 12.9% hike in February year-over-year.
For newly sold homes, the average mortgage size saw a surge year-over-year in contrast to new home prices. In March 2016, the average mortgage size was $313,804, a 5.3% boost from a year earlier. Average mortgage size gained 10.4% in February 2016 from a year earlier.
Other Market Trends
Single-family homes accounted for a greater percentage of new home closings than last year. The share of new home closings belonging to single-family homes jumped from 71.0% in March 2015 to 85.5% of closings in March 2016. Meanwhile, attached units as a percentage of all new home closings sank to 14.5% of closings from 29.0% of closings.
The average unit size of newly sold homes slid 13.8% year-over-year to 1,940 square feet in March 2016. In February, the average size of new homes sold went from 2,269 square feet a year earlier to 1,981 square feet.
Foreclosures and real estate owned (REO) closings fell in March from a year earlier, but remained a drag on the market. Together, foreclosures plus REO closings made up 29.8% of existing home closings, down from 34.1% a year earlier. The percentage of existing home closings involving foreclosures sank to 13.8% in March from 16.9% a year earlier while REO closings as a percentage of existing home closings dropped to 16.0% from 17.2% a year earlier.