There was an increase in closings of new homes in the Durham, NC market in November year-over-year, and the percentage gain was an improvement from October 2015, suggesting the market may be gaining momentum. There was a 23.9% hike in new home closings from a year earlier. This was after the housing market saw a 6.4% boost year-over-year in October.
A total of 1,708 new homes were sold during the 12 months that ended in November, up from 1,681 for the year that ended in October.
Out of all housing closings, new home closings represented 22.0%. This is an increase on a percentage basis, as new home closings were 18.8% of total closings a year ago. Closings of new and existing homes increased year-over-year in November following a decline in October year-over-year.
Pricing and Mortgage Trends
The average price of new homes was $335,912 per unit in November, up 2.0%from a year earlier. This boost is smaller than the 10.2% surge in October year-over-year.
For newly sold homes, the average mortgage size increased year-over-year along with new home prices. It jumped 1.7% in November from a year earlier to $268,110. Average mortgage size rose 13.0% in October 2015 from a year earlier.
Other Market Trends
The share of new home closings made up by attached units has risen while the share belonging to single-family homes has fallen. Attached unit closings gained from 15.9% of all closings in November 2014 to 17.9% of closings in November 2015. Meanwhile, single-family home closings as a percentage of all new home closings declined to 82.1% of closings from 84.1% of closings.
For all new homes sold, the average unit size rose 16.4% year-over-year to 3,057 square feet in November 2015. In October, the average size of new homes sold went from 2,498 square feet a year earlier to 2,899 square feet. An increase was also seen in October 2015 when the average size of new homes sold climbed 16.1% to 2,899 square feet.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in November, but did not appear to be dragging the market. Foreclosures and REO closings, taken together, represented 17.7% of existing closings, lower than 21.1% a year earlier. The percentage of existing home closings involving foreclosures fell to 8.9% in November from 11.7% a year earlier and REO closings moved from 9.4% of existing home closings in November 2014 to 8.9% in November 2015.