Closings of new homes slid year-over-year in April in the Durham, NC market, and there were hints the market may be weakening with a percentage fall steeper than March 2016. There was a 16.7% decline in new home closings from a year earlier. This was after the housing market saw a 2.7% fall year-over-year in March.
A total of 1,772 new homes were sold during the 12 months that ended in April, down from 1,795 for the year that ended in March.
As a percentage of overall housing closings, new home closings accounted for 16.2% of overall housing closings. They accounted for 17.0% of closings a year earlier. Closings of new and existing homes fell year-over-year in April after also falling in March year-over-year.
Pricing and Mortgage Trends
The average price of new homes sank by 2.5% year-over-year to $325,716 per unit in April. This drop compares to a 7.8% gain in March year-over-year.
For newly sold homes, the average mortgage size rose year-over-year in contrast to new home prices. In April 2016, average mortgage size rose 2.9% from a year earlier to $263,358. Average mortgage size jumped 4.8% in March 2016 from a year earlier.
Other Market Trends
As a percentage of new home closings, attached unit closings have gained from last year while single-family home closings have dropped. The share of new home closings belonging to attached units climbed from 23.2% of closings in April 2015 to 36.5% of closings in April 2016. Meanwhile, single-family home closings as a percentage of all new home closings slid to 63.5% of closings from 76.8% of closings.
For all new homes sold, the average unit size jumped 11.6% year-over-year to 2,610 square feet in April 2016. The average size of newly sold homes moved from 2,466 square feet in March 2015 to 2,894 square feet in March 2016.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in April, but did not appear to be dragging the market. Out of all existing home closings, foreclosures combined with REO closings represented 10.8% of closings, below 16.7% a year earlier. The percentage of existing home closings involving foreclosures dropped to 4.7% in April from 8.9% a year earlier while REO closings as a percentage of existing home closings sank to 6.1% from 7.7% a year earlier.