The Greensboro, NC market saw a drop in new home closings year-over-year in January, and the percentage drop worsened from December 2015, indicating the market may be weakening. There was a 17.5% drop in new home closings from a year earlier. This came after a 3.8% drop year-over-year in December.
A total of 994 new homes were sold during the 12 months that ended in January, down from 1,004 for the year that ended in December.
As a percentage of overall housing closings, new home closings represented 6.7%. This is a drop 8.3% of closings a year earlier. After dropping in December from a year earlier, closings of new and existing homes climbed year-over-year in January.
Pricing and Mortgage Trends
The average per-unit price of newly sold homes jumped year-over-year to $261,287 in January, up 9.6% from last year. This lift is smaller than the 14.6% boost in December year-over-year.
For newly sold homes, the average mortgage size rose year-over-year along with new home prices. In January 2016, the average mortgage size on newly sold homes saw a 6.0% hike from a year earlier. In December 2015, average mortgage size on newly sold homes saw a 29.6% surge year-over-year from a year earlier.
Other Market Trends
As a percentage of new home closings, attached unit closings have grown from last year while single-family home closings have dropped. Attached unit closings increased from 24.6% of all closings in January 2015 to 42.6% of closings in January 2016. Conversely, the share belonging to single-family homes dropped to 57.4% of closings from 75.4% of closings.
There was a 48.3% hike year-over-year in the average unit size of newly sold homes to 3,737 square feet in January 2016. The average size of newly sold homes moved from 2,392 square feet in December 2014 to 2,594 square feet in December 2015. An increase in both the average size and price of newly sold homes was also seen in December 2015 when the average size grew 8.4% to 2,594 square feet.
Foreclosures and real estate owned (REO) closings fell in January from a year earlier, but remained a burden on the market. Foreclosures and REO closings, taken together, represented 28.1% of existing closings, lower than 37.4% a year earlier. The percentage of existing home closings involving foreclosures slid to 16.8% in January from 19.7% a year earlier while REO closings as a percentage of existing home closings declined to 11.3% from 17.6% a year earlier.