In the Knoxville, TN market, new home closings fell year-over-year in November, and the percentage drop worsened from October 2015, indicating the market may be weakening. There was a 28.6% fall in new home closings from a year earlier. This came after a 19.4% fall year-over-year in October.
A total of 734 new homes were sold during the 12 months that ended in November, down from 748 for the year that ended in October.
Out of all housing closings, new home closings made up 4.3%. This is a decline 6.2% of closings a year earlier. After remaining steady in October from a year earlier, closings of new and existing homes increased in November.
Pricing and Mortgage Trends
The average price of new homes jumped year-over-year in November to $280,694 per unit, a rise of 13.3%. This bump is higher than the 1.1% rise 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. In November 2015, the average mortgage size was $229,822, up 3.8% from a year earlier. In October 2015, average mortgage size on newly sold homes saw a 6.9% fall from a year earlier.
Other Market Trends
The share of new home closings made up by attached units has risen while the share belonging to single-family homes has fallen. Attached unit closings jumped from 6.1% of all closings in November 2014 to 31.4% of closings in November 2015. Conversely, the share belonging to single-family homes fell to 68.6% of closings from 93.9% of closings.
The average unit size of newly sold homes sank 3.3% year-over-year to 2,190 square feet in November 2015. This fall was opposite the price lift, a pattern also seen in October 2015 when the average size of newly sold homes declined 3.3% to 2,229 square feet. In October, the average size of new homes sold went from 2,304 square feet a year earlier to 2,229 square feet.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in November, but did not appear to be dragging the market. Out of all existing home closings, foreclosures combined with REO closings accounted for 22.2% of closings, below 24.1% a year earlier. The percentage of existing home closings involving foreclosures went from 11.4% in November 2014 to 11.0% in November 2015 and REO closings as a percentage of existing home closings slid to 11.2% from 12.7% a year earlier.