New home closings increased year-over-year in August in the Virginia Beach, VA market, and the percentage lift was greater than July 2015, giving hints of improving market conditions. There was a 40.0% boost in new home closings from a year earlier. This came on the heels of a 8.3% hike year-over-year in July.
A total of 1,887 new homes were sold during the 12 months that ended in August, up from 1,835 for the year that ended in July.
As a percentage of overall housing closings, new home closings represented 7.2%. This marks a rise from 5.6% of total closings a year earlier. Closings of new and existing homes grew year-over-year in August after also rising in July year-over-year.
Pricing and Mortgage Trends
The average price of new homes climbed year-over-year in August to $362,555 per unit, a rise of 3.0%. This surge follows a move from $355,092 per unit in July 2014 to $354,176 in July 2015.
For newly sold homes, average mortgage size moved from $310,162 in August 2014 to $311,504 in August 2015. Average mortgage size slid 3.9% in July 2015 from a year earlier.
Other Market Trends
There has been little change in the composition of the market with regard to the types of properties sold. From a year ago, single-family home closings have moved from 76.2% of new home closings to 76.4% of closings while attached units have gone from 23.8% of closings to 23.6% of closings.
For all new homes sold, the average unit size fell 3.2% year-over-year to 2,425 square feet in August 2015. The average size of newly sold homes moved from 2,499 square feet in July 2014 to 2,466 square feet in July 2015.
Foreclosures and real estate owned (REO) closings decreased in August from a year earlier, but remained a drag on the market. Out of all existing home closings, foreclosures combined with REO closings accounted for 25.1% of closings, below 32.6% a year earlier. The percentage of existing home closings involving foreclosures declined to 11.8% in August from 15.8% a year earlier while REO closings as a percentage of existing home closings dropped to 13.3% from 16.8% a year earlier.