Closings of new homes gained year-over-year in March in the Clarksville, TN-KY market, and the percentage gain was better than February 2016, suggesting the market may be strengthening. New home closings saw a 53.3% jump from a year earlier to 69. In comparison, new home closings in the same month last year saw a 50.0% jump year-over-year in February.
A total of 698 new homes were sold during the 12 months that ended in March, up from 674 for the year that ended in February.
New home closings accounted for 10.6% of overall housing closings. This is better than the 8.7% of closings a year earlier. For new and existing homes, closings climbed year-over-year in March after also increasing in February year-over-year.
Pricing and Mortgage Trends
The average price of new homes gained year-over-year in March to $216,476 per unit, a rise of 8.9%. This surge is higher than the 8.4% hike in February year-over-year.
Along with new home prices, there was an increase year-over-year in the average mortgage size on newly sold homes. In March 2016, the average mortgage size on newly sold homes saw a 2.7% rise from a year earlier. In February 2016, average mortgage size on newly sold homes saw a 5.8% lift 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 March 2016. Single-family home closings have accounted for 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 rose 8.9% year-over-year to 2,182 square feet in March 2016. The average size of newly sold homes moved from 1,889 square feet in February 2015 to 1,871 square feet in February 2016.
Foreclosures and real estate owned (REO) closings decreased in March from a year earlier, but stayed a drag on the market. Out of all existing home closings, foreclosures combined with REO closings represented 27.8% of closings, below 29.8% a year earlier. The percentage of existing home closings involving foreclosures dropped to 13.4% in March from 16.8% a year earlier while REO closings as a percentage of existing home closings jumped to 14.4% from 13.0%.
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