In the Charlottesville, VA market, closings of new homes declined year-over-year in May, and the decline was by a larger percentage than the April 2016. New home closings moved from 35 a year earlier to 11 after the figure moved from 26 in April 2015 to 13 in April 2016.
A total of 295 new homes were sold during the 12 months that ended in May, down from 319 for the year that ended in April.
On a percentage basis, new home closings as a part of total closings decreased to 2.7% from 8.2% a year earlier. Following a year-over-year decline in April, closings of new and existing homes also sank year-over-year in May.
Pricing and Mortgage Trends
The average per-unit price of new homes was $340,567, compared with $423,917 last year. This was on the heels of a 3.3% drop in April from a year earlier.
The average mortgage size moved to $283,466, down from last year's $345,825. Average mortgage size on new homes went from $339,808 in April 2015 to $329,289 in April 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 May 2016.
The average unit size of newly sold homes fell from 2,370 square feet a year earlier to 2,041 square feet.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in May, but did not appear to be dragging the market. Out of all existing home closings, foreclosures combined with REO closings made up 10.4% of closings, below 12.5% a year earlier. The percentage of existing home closings involving foreclosures declined to 4.0% in May from 9.7% a year earlier while REO closings as a percentage of existing home closings rose to 6.3% from 2.8%.