New home closings dropped year-over-year in September in the Knoxville, TN market, drawing a downward slope off of a rise in August 2015. New home closings saw a 19.7% fall from a year earlier to 57. In comparison, new home closings in the same month last year saw a 17.5% boost year-over-year in August.
A total of 752 new homes were sold during the 12 months that ended in September, down from 766 for the year that ended in August.
Out of all housing closings, new home closings represented 5.4%. This is down from the a year earlier when new home closings accounted for 7.7% of total closings. Following a year-over-year increase in August, closings of new and existing homes also increased year-over-year in September.
Pricing and Mortgage Trends
For newly sold homes, the average price dropped 2.6% year-over-year in September to $258,784 per unit. This drop compares to a 7.4% gain in August year-over-year.
Average mortgage size on new homes went from $212,419 in September 2014 to $211,138 in September 2015. In August 2015, average mortgage size rose 8.1% from a year earlier.
Other Market Trends
Closings of attached units, as a percentage of new home closings, have grown from last year while closings of single-family homes have slumped. The share of new home closings belonging to attached units climbed from 11.3% of closings in September 2014 to 15.8% of closings in September 2015. Conversely, the share belonging to single-family homes sank to 84.2% of closings from 88.7% of closings.
For all new homes sold, the average unit size dropped 4.7% year-over-year to 2,302 square feet in September 2015. In August, the average size of new homes sold went from 2,325 square feet a year earlier to 2,432 square feet.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in September, but did not look to be a burden on the market. Together, foreclosures plus REO closings made up 19.0% of existing home closings, down from 25.9% a year earlier. The percentage of existing home closings involving foreclosures fell to 9.8% in September from 15.4% a year earlier while REO closings as a percentage of existing home closings declined to 9.2% from 10.5% a year earlier.