In the Winston-Salem, NC market, new home closings grew year-over-year in August, but the percentage edged up less than July 2015, suggesting the market may be leveling out. There was a 46.6% boost in new home closings from a year earlier. This followed a 78.0% jump year-over-year in July.
A total of 780 new homes were sold during the 12 months that ended in August, up from 753 for the year that ended in July.
New home closings accounted for 12.5% of overall housing closings. This is a bump from 8.3% of closings a year earlier. After rising year-over-year in July, closings of new and existing homes fell year-over-year in August.
Pricing and Mortgage Trends
The average per-unit value of new homes slid year-over-year to $184,794 in August, a drop of 20.9% from a year earlier. This fall is larger than the 7.0% decline in July from a year earlier.
The average mortgage size on newly sold homes dropped year-over-year in contrast to the average price of new homes. Average mortgage size dropped by 19.2% from a year earlier, settling at $173,023 in August. In July 2015, average mortgage size fell 3.5% 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. The share of new home closings belonging to single-family homes gained from 79.3% in August 2014 to 83.5% of closings in August 2015. Meanwhile, attached units as a percentage of all new home closings dropped to 16.5% of closings from 20.7% of closings.
There was a 12.2% rise year-over-year in the average unit size of newly sold homes to 2,458 square feet in August 2015. The average size of newly sold homes moved from 2,159 square feet in July 2014 to 2,302 square feet in July 2015. For newly sold homes, an average size gain contrasting with an average price fall was also seen in July 2015 when the average size of newly sold homes dropped 6.6% to 2,302 square feet.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in August, but did not look to be a burden on the market. Out of all existing home closings, foreclosures combined with REO closings represented 24.3% of closings, below 29.8% a year earlier. The percentage of existing home closings involving foreclosures declined to 10.1% in August from 15.7% a year earlier and REO closings moved from 14.0% of existing home closings in August 2014 to 14.2% in August 2015.