The Charlottesville, VA market saw a drop in new home closings year-over-year in December, and there were hints of worsening market conditions as the percentage drop was steeper than November 2015. New home closings saw a 23.3% decline from a year earlier to 23. This came on the heels of a 15.0% decline year-over-year in November.
A total of 248 new homes were sold during the 12 months that ended in December, down from 255 for the year that ended in November.
Out of all housing closings, new home closings represented 9.3%. This is down from the 11.4% of closings a year earlier. After rising year-over-year in November, closings of new and existing homes fell year-over-year in December.
Pricing and Mortgage Trends
The average price of new homes slid 9.9% year-over-year in December to $354,030 per unit. This drop is larger than the 3.1% decline in November from a year earlier.
Average mortgage size on new homes went from $299,546 in December 2014 to $297,682 in December 2015. In November 2015, average mortgage size on newly sold homes saw a 9.7% hike year-over-year from a year earlier.
Other Market Trends
There was no change in the composition of the new home market with regard to the types of properties sold in December 2015. Single-family home closings have represented all of new home closings while attached unit closings have made up no part of closings.
For all new homes sold, the average unit size declined 1.5% year-over-year to 2,308 square feet in December 2015. In November, the average size of new homes sold went from 2,517 square feet a year earlier to 2,415 square feet. A decrease in both the average size and price of newly sold homes was also seen in November 2015 when the average size rose 4.1% to 2,415 square feet.
Foreclosures and real estate owned (REO) closings rose in December from a year earlier and did not appear to be dragging the market. Foreclosures and REO closings, taken together, accounted for 23.6% of existing home closings, up from 15.5% a year earlier. The percentage of existing home closings involving foreclosures went from 9.9% in December 2014 to 10.7% in December 2015 and REO closings as a percentage of existing home closings jumped to 12.9% from 5.6%.