In the Charlottesville, VA market, new home closings dropped year-over-year in June, and the decline was by a larger percentage than the May 2016. New home closings moved from 60 a year earlier to 14 after the figure moved from 35 in May 2015 to 11 in May 2016.
A total of 250 new homes were sold during the 12 months that ended in June, down from 296 for the year that ended in May.
On a percentage basis, new home closings as a part of total closings decreased to 3.0% from 12.3% a year earlier. Closings of new and existing homes sank year-over-year in June after also falling in May year-over-year.
Pricing and Mortgage Trends
The average price for newly sold homes moved north to $433,240 from $428,598 a year ago. This was on the heels of a 19.7% fall in May from a year earlier.
Average mortgage size on new homes increased to $366,007 from $346,424 last year. Average mortgage size on new homes went from $345,825 in May 2015 to $283,466 in May 2016.
Other Market Trends
There was no change in the composition of the new home market with regard to the types of properties sold in June 2016.
The average unit size of newly sold homes fell from 2,797 square feet a year earlier to 2,430 square feet.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in June, but did not appear to be dragging the market. Combined, foreclosures plus REO closings accounted for 8.1% of existing home closings, below 10.8% a year earlier. The percentage of existing home closings involving foreclosures declined to 3.8% in June from 6.6% a year earlier while REO closings as a percentage of existing home closings stayed level at 4.3%.