Closings of new homes grew year-over-year in February in the Nashville, TN market, and the percentage surge was greater than January 2016, giving hints of improving market conditions. New home closings saw a jump of 18.0% from a year earlier to 479. This followed a move from 385 in January 2015 to 406 in January 2016.
A total of 6,457 new homes were sold during the 12 months that ended in February, up from 6,384 for the year that ended in January.
Of 2,962 total closings, 479 were of new homes. This is an increase on a percentage basis, as new home closings were 14.8% of total closings a year ago. For new and existing homes, closings rose year-over-year in February after also increasing in January year-over-year.
Pricing and Mortgage Trends
In February, the average price of newly sold homes dropped year-over-year to $341,190 per unit, marking a 1.8% drop from the year-earlier figure. This decline is a drop off from the 4.7% drop in January from a year earlier.
The average mortgage size on newly sold homes increased year-over-year in contrast to the average price of new homes. In February 2016, there was a 1.7% gain in the average mortgage size, reaching $283,092. In January 2016, average mortgage size increased 3.4% 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 75.6% of new closings in February 2015 to 77.0% of closings in February 2016. Meanwhile, attached units as a percentage of all new home closings declined to 23.0% of closings from 24.4% of closings.
There was a 4.5% lift year-over-year in the average unit size of newly sold homes to 2,646 square feet in February 2016. In January, the average size of new homes sold went from 2,365 square feet a year earlier to 2,723 square feet. For newly sold homes, an average size gain contrasting with an average price decline was also seen in January 2016 when the average size of newly sold homes sank 15.1% to 2,723 square feet.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in February, but did not appear to be dragging the market. Out of all existing home closings, foreclosures combined with REO closings made up 16.0% of closings, below 18.5% a year earlier. The percentage of existing home closings involving foreclosures slid to 7.0% in February from 9.2% a year earlier and REO closings moved from 9.3% of existing home closings in February 2015 to 9.0% in February 2016.