In November, there was a fall year-over-year in new home closings in the Memphis, TN market, but with a percentage decline less steep than October 2015, there are hints the market may be evening out. There was a 29.0% decline in new home closings from a year earlier. This came on the heels of a 58.2% decline year-over-year in October.
A total of 827 new homes were sold during the 12 months that ended in November, down from 847 for the year that ended in October.
As a percentage of overall housing closings, new home closings made up 3.5%. This is down from the a year earlier when new home closings accounted for 4.6% of total closings. Closings of new and existing homes slid year-over-year in November after also falling in October year-over-year.
Pricing and Mortgage Trends
The average price of new homes climbed year-over-year 24.1% in November to $259,862 per unit. This rise is better than the 21.6% bump in October year-over-year.
The average mortgage size on newly sold homes grew year-over-year along with the average price of new homes. It increased to $227,518 in November, a 22.6% lift. In October 2015, average mortgage size gained 15.6% from a year earlier.
Other Market Trends
As a percentage of new home closings, attached unit closings have risen from last year while single-family home closings have dropped. Attached unit closings jumped from 2.9% of all closings in November 2014 to 18.4% of closings in November 2015. Meanwhile, single-family home closings as a percentage of all new home closings slid to 81.6% of closings from 97.1% of closings.
The average unit size of newly sold homes went from 2,067 square feet in November 2014 to 2,058 square feet in November 2015. In October 2015, the average size of newly sold homes increased 32.7% from the year earlier. The average size of newly sold homes moved from 2,199 square feet in October 2014 to 2,919 square feet in October 2015.
Foreclosures and real estate owned (REO) closings continued to increase in November from a year earlier and stayed a drag on the market. Together, foreclosures plus REO closings made up 41.4% of existing home closings, up from 39.5% a year earlier. The percentage of existing home closings involving foreclosures rose to 22.7% in November from 20.4% a year earlier and REO closings moved from 19.1% of existing home closings in November 2014 to 18.7% in November 2015.