In August, the Durham, NC market saw a decline year-over-year in new home closings, but there were signs of market improvement with a percentage decline less steep than in July 2015. New home closings saw a decline of 7.3% from the year earlier to 152. This followed a 27.5% fall year-over-year in July.
A total of 1,560 new homes were sold during the 12 months that ended in August, down from 1,572 for the year that ended in July.
As a percentage of overall housing closings, new home closings made up 17.9%. This is a decline 19.8% of closings a year earlier. For new and existing homes, closings rose year-over-year in August after also increasing in July year-over-year.
Pricing and Mortgage Trends
The average price of new homes was $322,774 per unit in August, up 8.1%from a year earlier. This boost is smaller than the 25.6% gain in July year-over-year.
There was a lift year-over-year in the average mortgage size on new homes along with new home prices. In August 2015, the average mortgage size on newly sold homes saw a 10.5% boost from a year earlier. In July 2015, average mortgage size on newly sold homes saw a 21.9% rise year-over-year from a year earlier.
Other Market Trends
The percentage of new home closings belonging to single-family homes has risen from last year while the portion of new home closings belonging to attached units has dropped. The share of new home closings belonging to single-family homes jumped from 73.8% in August 2014 to 77.6% of closings in August 2015. At the same time, the share of new home closings belonging to attached units declined to 22.4% of closings from 26.2% of closings.
For all new homes sold, the average unit size declined 19.0% year-over-year to 1,988 square feet in August 2015. For newly sold homes, an average size fall contrasting with an average price boost was also seen in July 2015 when the average size of newly sold homes slid 8.1% to 2,342 square feet. The average size of newly sold homes moved from 2,549 square feet in July 2014 to 2,342 square feet in July 2015.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in August, but did not appear to be dragging the market. Foreclosures and REO closings, taken together, accounted for 12.8% of existing closings, lower than 15.8% a year earlier. The percentage of existing home closings involving foreclosures fell to 7.6% in August from 8.9% a year earlier while REO closings as a percentage of existing home closings sank to 5.2% from 6.9% a year earlier.