The Raleigh, NC market saw a drop in new home closings year-over-year in August, and the percentage fall, which was steeper than July 2015, gave signals that the market may be worsening. Closings slumped 16.9% from a year earlier to 453. In comparison, new home closings in the same month last year saw a 14.9% fall year-over-year in July.
A total of 6,025 new homes were sold during the 12 months that ended in August, down from 6,117 for the year that ended in July.
As a percentage of overall housing closings, new home closings represented 20.1%. This is down from the a year earlier when new home closings accounted for 22.2% of total closings. For new and existing homes, closings slid in August after also declining in July year-over-year.
Pricing and Mortgage Trends
The average price of new homes rose year-over-year in August to $331,985 per unit, a rise of 2.9%. This hike is smaller than the 3.2% gain in July year-over-year.
The average mortgage size on newly sold homes saw a bump year-over-year along with new home prices. In August 2015, there was a 3.8% surge in the average mortgage size, reaching $274,129. Average mortgage size increased 2.3% in July 2015 from a year earlier.
Other Market Trends
Closings of attached units, as a percentage of new home closings, have gained from last year while closings of single-family homes have dipped. The share of new home closings belonging to attached units grew from 18.0% of closings in August 2014 to 19.4% of closings in August 2015. Conversely, the share belonging to single-family homes fell to 80.6% of closings from 82.0% of closings.
The average unit size of newly sold homes increased 14.1% year-over-year to 3,060 square feet in August 2015. An increase was also seen in July 2015 when the average size of new homes sold jumped 2.8% to 2,735 square feet. In July, the average size of new homes sold went from 2,661 square feet a year earlier to 2,735 square feet.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in August, but did not appear to be dragging the market. Together, foreclosures plus REO closings represented 10.0% of existing home closings, down from 16.6% a year earlier. The percentage of existing home closings involving foreclosures sank to 4.7% in August from 8.1% a year earlier while REO closings as a percentage of existing home closings declined to 5.3% from 8.5% a year earlier.