In April, the Durham, NC market saw a decline year-over-year in new home closings, and there were signs of weakening market conditions with a percentage drop steeper than that of March 2016. New home closings saw a 16.7% decline from a year earlier to 115. This came on the heels of a 2.7% decline 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 made up 16.2% of overall housing closings. A year earlier, new home closings represented 17.0% of total closings. For new and existing homes, closings fell in April after also declining in March year-over-year.
Pricing and Mortgage Trends
In April, the average price of newly sold homes fell 2.5% year-over-year to $325,716 per unit. This decline compares to a 7.8% boost in March year-over-year.
There was a bump year-over-year in the average mortgage size on new homes in contrast to new home prices. In April 2016, the average mortgage size was $263,358, a 2.9% hike from a year earlier. In March 2016, average mortgage size on newly sold homes saw a 4.8% gain year-over-year from a year earlier.
Other Market Trends
As a percentage of new home closings, attached unit closings have risen from last year while single-family home closings have dropped. Attached unit closings gained from 23.2% of all closings in April 2015 to 36.5% of closings in April 2016. At the same time, the share belonging to single-family homes slid to 63.5% of closings from 76.8% of closings.
There was a 11.6% rise year-over-year in the average unit size of newly sold homes to 2,610 square feet in April 2016. In March, the average size of new homes sold went from 2,466 square feet a year earlier to 2,894 square feet.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in April, but did not appear to be dragging the market. Together, foreclosures plus REO closings made up 10.8% of existing home closings, down from 16.7% a year earlier. The percentage of existing home closings involving foreclosures sank to 4.7% in April from 8.9% a year earlier while REO closings as a percentage of existing home closings fell to 6.1% from 7.7% a year earlier.