In the Durham, NC market in July, new home closings declined year-over-year, and the percentage drop, which was steeper than June 2015, gave hints of weakening market conditions. Closings slid 29.2% from a year earlier to 126. This came on the heels of a 12.3% decline year-over-year in June.
A total of 1,545 new homes were sold during the 12 months that ended in July, down from 1,597 for the year that ended in June.
New home closings made up 12.9% of overall housing closings. This is down from the 19.2% of closings a year earlier. Closings of new and existing homes increased year-over-year in July after also rising in June year-over-year.
Pricing and Mortgage Trends
In July, the average price of newly sold homes jumped 25.6% year-over-year to $359,063 per unit. This bump is better than the 13.0% gain in June year-over-year.
For newly sold homes, the average mortgage size increased year-over-year along with new home prices. In July 2015, average mortgage size rose 21.6% from a year earlier to $281,995. Average mortgage size jumped 5.5% in June 2015 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. Single-family home closings gained from 71.9% of new closings in July 2014 to 76.2% of closings in July 2015. Meanwhile, attached units as a percentage of all new home closings slid to 23.8% of closings from 28.1% of closings.
There was a 8.1% drop year-over-year in the average unit size of newly sold homes to 2,342 square feet in July 2015. The average size of newly sold homes moved from 2,393 square feet in June 2014 to 2,453 square feet in June 2015.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in July, but did not look to be a burden on the market. Out of all existing home closings, foreclosures combined with REO closings accounted for 12.1% of closings, below 15.2% a year earlier. The percentage of existing home closings involving foreclosures sank to 5.9% in July from 9.6% a year earlier and REO closings moved from 5.6% of existing home closings in July 2014 to 6.2% in July 2015.