In the Richmond, VA market, closings of new homes fell year-over-year in June, and the percentage fall, which was steeper than May 2016, gave suggestions of weakening market conditions. Closings dropped 22.8% from a year earlier to 176. In comparison, new home closings in the same month last year saw a 10.1% drop year-over-year in May.
A total of 2,181 new homes were sold during the 12 months that ended in June, down from 2,233 for the year that ended in May.
As a percentage of overall housing closings, new home closings made up 7.8%. This is down from the a year earlier when new home closings made up 9.8% of total closings. Following a year-over-year increase in May, closings of new and existing homes sank year-over-year in June.
Pricing and Mortgage Trends
The average price of new homes rose year-over-year 5.4% in June to $393,901 per unit. This gain compares to a 10.2% fall in May from a year earlier.
There was a hike year-over-year in the average mortgage size on new homes along with new home prices. Average mortgage size jumped 5.7% to $336,491 in June from a year earlier. Average mortgage size sank 7.2% in May 2016 from a year earlier.
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. The share of new home closings belonging to single-family homes grew from 85.5% in June 2015 to 96.6% of closings in June 2016. Meanwhile, attached units as a percentage of all new home closings fell to 3.4% of closings from 14.5% of closings.
The average unit size of newly sold homes climbed 1.3% year-over-year to 2,875 square feet in June 2016. The average size of newly sold homes moved from 2,943 square feet in May 2015 to 2,642 square feet in May 2016.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in June, but did not look to be a burden on the market. Combined, foreclosures plus REO closings represented 16.0% of existing home closings, below 19.0% a year earlier. The percentage of existing home closings involving foreclosures declined to 8.0% in June from 9.4% a year earlier while REO closings as a percentage of existing home closings sank to 8.0% from 9.6% a year earlier.