In the Chattanooga, TN market in July, closings of new homes slid year-over-year, and the decline was by a larger percentage than the June 2016. New home closings moved from 48 a year earlier to 13 after the figure moved from 45 in June 2015 to 17 in June 2016.
A total of 319 new homes were sold during the 12 months that ended in July, down from 354 for the year that ended in June.
Last year, 48 of 1,026 total closings were new homes, and this percentage saw a decline as new home closings this year made up 13 of the 855 total closings. For new and existing homes, closings sank in July after also declining in June year-over-year.
Pricing and Mortgage Trends
The average new home price was $267,540, down from $311,973 a year earlier. This was on the heels of a 2.0% fall in June from a year earlier.
Average mortgage size on new homes fell from $241,756 to $221,491. In June 2016, average mortgage size slid 2.0% from a year earlier.
Other Market Trends
The share of new home closings made up by attached units has risen while the share belonging to single-family homes has fallen.
The average unit size of newly sold homes fell from 1,870 square feet a year earlier to 1,618 square feet.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in July, but did not appear to be dragging the market. Together, foreclosures plus REO closings represented 13.7% of existing home closings, down from 22.0% a year earlier. The percentage of existing home closings involving foreclosures dropped to 5.6% in July from 11.2% a year earlier while REO closings as a percentage of existing home closings fell to 8.1% from 10.7% a year earlier.