Closings of new homes in the Chattanooga, TN market sank year-over-year in May, but the decline was less than the year-over-year decline in April. New home closings moved from 36 a year earlier to 14 after the figure moved from 44 in April 2015 to 16 in April 2016.

A total of 381 new homes were sold during the 12 months that ended in May, down from 403 for the year that ended in April.

Last year, 36 of 1,034 total closings were new homes, and this percentage saw a decline as new home closings this year made up 14 of the 1,062 total closings. New and existing home closings grew in May after a remaining level in April from a year earlier.

Pricing and Mortgage Trends

The average new home price was $309,361, up from $286,095 a year earlier. This was on the heels of a 35.2% decline in April from a year earlier.

The average mortgage size on new homes was $261,962, up from $249,423. In April 2016, average mortgage size sank 23.1% from a year earlier.

Other Market Trends

As a share of new home closings, single-family home closings have risen from last year while the share belonging to attached units has fallen.

The average unit size of newly sold homes fell from 1,727 square feet a year earlier to 926 square feet.

Foreclosures and real estate owned (REO) closings rose in May from a year earlier and did not look to be a burden on the market. Foreclosures and REO closings, taken together, accounted for 24.3% of existing home closings, up from 20.3% a year earlier. The percentage of existing home closings involving foreclosures went from 10.3% in May 2015 to 9.6% in May 2016 and REO closings as a percentage of existing home closings climbed to 14.7% from 10.0%.

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