New home closings in the Wilmington, NC market dropped year-over-year in June, and there were hints the market may be weakening with a percentage decline steeper than May 2016. New home closings saw a 80.0% drop from a year earlier to 17. In comparison, new home closings in the same month last year saw a 69.3% decline year-over-year in May.
A total of 518 new homes were sold during the 12 months that ended in June, down from 586 for the year that ended in May.
Out of all housing closings, new home closings represented 2.1%. This is a fall 8.2% of closings a year earlier. Following a year-over-year increase in May, closings of new and existing homes dropped year-over-year in June.
Pricing and Mortgage Trends
The average price of newly sold homes increased year-over-year 25.9% in June to $343,853 per unit. This gain compares to a 2.6% drop in May from a year earlier.
The average mortgage size on newly sold homes rose year-over-year along with the average price of new homes. The average mortgage size rose to $261,133 in June, marking a 11.9% lift compared with a year earlier. In May 2016, average mortgage size on newly sold homes saw a 10.0% gain year-over-year 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 fallen. Attached unit closings grew from 2.4% of all closings in June 2015 to 5.9% of closings in June 2016. Conversely, the share belonging to single-family homes sank to 94.1% of closings from 97.6% of closings.
The average unit size of newly sold homes gained 5.9% year-over-year to 2,405 square feet in June 2016. In May, the average size of new homes sold went from 2,274 square feet a year earlier to 1,934 square feet.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in June, but did not look to be a burden on the market. Together, foreclosures plus REO closings accounted for 10.0% of existing home closings, down from 11.7% a year earlier. The percentage of existing home closings involving foreclosures went from 5.1% in June 2015 to 4.8% in June 2016 and REO closings as a percentage of existing home closings dropped to 5.2% from 6.6% a year earlier.