In February, there was a drop year-over-year in new home closings in the Greensboro, NC market, but compared with January 2016, the percentage decline was less steep, hinting the market may be strengthening. New home closings saw a decline of 6.6% from the year earlier to 57. In comparison, new home closings in the same month last year saw a 17.5% drop year-over-year in January.
A total of 992 new homes were sold during the 12 months that ended in February, down from 996 for the year that ended in January.
New home closings accounted for 6.1% of overall housing closings. This is down from the a year earlier when new home closings accounted for 8.9% of total closings. For new and existing homes, closings grew year-over-year in February after also increasing in January year-over-year.
Pricing and Mortgage Trends
Average price of newly sold homes saw a 1.5% surge year-over-year in February to $243,440 per unit. This boost is smaller than the 9.6% lift in January year-over-year.
There was a rise year-over-year in the average mortgage size on new homes along with new home prices. In February 2016, there was a 1.8% lift in the average mortgage size, reaching $217,543. Average mortgage size grew 6.0% in January 2016 from a year earlier.
Other Market Trends
Single-family homes accounted for a greater percentage of new home closings than last year. Single-family home closings rose from 80.3% of new closings in February 2015 to 82.5% of closings in February 2016. Conversely, the share of new home closings belonging to attached units slid to 17.5% of closings from 19.7% of closings.
There was a 18.2% fall year-over-year in the average unit size of newly sold homes to 2,031 square feet in February 2016. The average size of newly sold homes moved from 2,520 square feet in January 2015 to 3,737 square feet in January 2016.
Foreclosures and real estate owned (REO) closings fell in February from a year earlier, but remained a drag on the market. Out of all existing home closings, foreclosures combined with REO closings represented 26.6% of closings, below 35.3% a year earlier. The percentage of existing home closings involving foreclosures dropped to 13.0% in February from 18.7% a year earlier while REO closings as a percentage of existing home closings sank to 13.6% from 16.6% a year earlier.