In the Chattanooga, TN market, new home closings slid year-over-year in February, and the decline was by a larger percentage than the January 2016. New home closings moved from 27 a year earlier to 12 after the figure moved from 31 in January 2015 to 22 in January 2016.
A total of 445 new homes were sold during the 12 months that ended in February, down from 460 for the year that ended in January.
New home closings were 3.7% of total closings a year earlier, and this percentage saw a fall as new home closings this year made up 12 of the 712 total closings. Following a year-over-year decline in January, closings of new and existing homes also dropped year-over-year in February.
Pricing and Mortgage Trends
The average value of newly sold homes in February 2016 was $255,700, down from last year's $300,670. This was on the heels of a 3.1% drop in January from a year earlier.
The average mortgage size moved to $215,998, down from last year's $283,902. In January 2016, average mortgage size on newly sold homes saw a 3.6% fall from a year earlier.
Other Market Trends
The share of new home closings made up by attached units has risen while the share belonging to single-family homes has fallen.
The average unit size of newly sold homes rose from 1,350 square feet a year earlier to 1,523 square feet.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in February, but did not look to be a burden on the market. Together, foreclosures plus REO closings represented 20.1% of existing home closings, down from 37.2% a year earlier. The percentage of existing home closings involving foreclosures dropped to 9.3% in February from 11.5% a year earlier while REO closings as a percentage of existing home closings fell to 10.9% from 25.7% a year earlier.