Closings of new homes increased year-over-year in February in the Raleigh, NC market, rallying back from a drop in January 2016. New home closings saw a climb of 10.0% from the year earlier to 473. In comparison, new home closings in the same month last year saw a 13.2% fall year-over-year in January.
A total of 6,229 new homes were sold during the 12 months that ended in February, up from 6,186 for the year that ended in January.
New home closings made up 28.8% of overall housing closings. This is a hike from 25.4% of closings a year earlier. For new and existing homes, closings dropped in February after also declining in January year-over-year.
Pricing and Mortgage Trends
For newly sold homes, the average price declined 2.8% year-over-year in February to $311,250 per unit. This decline is larger than the 2.7% drop in January from a year earlier.
The average mortgage size on newly sold homes moved south year-over-year in contrast to new home prices. In February 2016, average mortgage size dropped 2.2% from a year earlier to $263,001. In January 2016, average mortgage size fell 4.6% 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. Attached unit closings climbed from 26.3% of all closings in February 2015 to 28.3% of closings in February 2016. Meanwhile, single-family home closings as a percentage of all new home closings slid to 71.7% of closings from 73.7% of closings.
There was a 2.3% lift year-over-year in the average unit size of newly sold homes to 2,698 square feet in February 2016. In January, the average size of new homes sold went from 2,597 square feet a year earlier to 2,490 square feet.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in February, but did not appear to be dragging the market. Foreclosures and REO closings, taken together, represented 13.2% of existing closings, lower than 18.6% a year earlier. The percentage of existing home closings involving foreclosures dropped to 7.1% in February from 10.1% a year earlier while REO closings as a percentage of existing home closings sank to 6.1% from 8.5% a year earlier.