New home closings gained year-over-year in February in the Richmond, VA market, rebounding from a year-over-year drop in January 2016. New home closings saw a boost of 17.9% from the year earlier to 125. This followed a 18.9% drop year-over-year in January.
A total of 2,191 new homes were sold during the 12 months that ended in February, up from 2,172 for the year that ended in January.
As a percentage of overall housing closings, new home closings represented 9.7% of overall housing closings. They represented 8.8% of closings a year earlier. Following a drop in January year-over-year, closings of new and existing homes increased year-over-year in February.
Pricing and Mortgage Trends
In February, there was a 3.0% rise year-over-year in the average price of newly sold homes, reaching $374,335 per unit. This bump follows a move from $359,602 per unit to $360,415 from January 2015 to January 2016.
The average mortgage size on newly sold homes climbed year-over-year along with the average price of new homes. In February 2016, there was a 8.5% rise in the average mortgage size, reaching $322,695. In January 2016, average mortgage size on newly sold homes saw a 6.4% decline from a year earlier.
Other Market Trends
Single-family homes accounted for a greater percentage of new home closings than last year. Single-family home closings grew from 85.8% of new closings in February 2015 to 93.6% of closings in February 2016. At the same time, the share of new home closings belonging to attached units sank to 6.4% of closings from 14.2% of closings.
The average unit size of newly sold homes jumped 5.4% year-over-year to 2,826 square feet in February 2016. The average size of newly sold homes moved from 2,826 square feet in January 2015 to 2,679 square feet in January 2016.
Foreclosures and real estate owned (REO) closings fell in February from a year earlier, but remained a burden on the market. Combined, foreclosures plus REO closings accounted for 28.4% of existing home closings, below 33.7% a year earlier. The percentage of existing home closings involving foreclosures sank to 15.5% in February from 18.2% a year earlier while REO closings as a percentage of existing home closings fell to 12.9% from 15.4% a year earlier.