Closings of new homes in the Fayetteville, NC market slid year-over-year in November, and the percentage drop that was steeper than October 2015 gave implications of worsening market conditions. Closings declined 64.3% from a year earlier to 20. This came after a 51.6% decline year-over-year in October.
A total of 576 new homes were sold during the 12 months that ended in November, down from 612 for the year that ended in October.
As a percentage of overall housing closings, new home closings made up 4.9%. This is down from the 13.5% of closings a year earlier. Following a year-over-year increase in October, closings of new and existing homes declined year-over-year in November.
Pricing and Mortgage Trends
Average price of newly sold homes had a 18.1% decline year-over-year to $195,400 per unit in November. This drop compares to a 2.0% gain in October year-over-year.
The average mortgage size on newly sold homes saw a decline year-over-year in contrast to new home prices. It sank 13.4% in November from a year earlier to $199,703. Average mortgage size went from $219,375 in October 2014 to $217,283 in October 2015.
Other Market Trends
As a share of new home closings, single-family home closings have climbed from last year while the share belonging to attached units has fallen. Single-family home closings rose from 94.6% of new closings in November 2014 to all of closings in November 2015. At the same time, the share of new home closings belonging to attached units declined to no part of closings from 5.4% of closings.
For all new homes sold, the average unit size sank 7.1% year-over-year to 2,268 square feet in November 2015. In October, the average size of new homes sold went from 2,488 square feet a year earlier to 2,453 square feet.
Foreclosures and real estate owned (REO) closings declined in November from a year earlier, but remained a drag on the market. Together, foreclosures plus REO closings represented 51.3% of existing home closings, down from 52.8% a year earlier. The percentage of existing home closings involving foreclosures rose to 26.3% in November from 24.3% a year earlier while REO closings as a percentage of existing home closings fell to a quarter from 28.5% a year earlier.