In September, the Fayetteville, NC market saw a decline year-over-year in new home closings, and the percentage decline, which was steeper than August 2015, gave signs of weakening market conditions. New home closings saw a decline of 66.1% from the year earlier to 19. In comparison, new home closings in the same month last year saw a 64.6% decline year-over-year in August.
A total of 528 new homes were sold during the 12 months that ended in September, down from 565 for the year that ended in August.
New home closings accounted for 4.8% of overall housing closings. This is down from the a year earlier when new home closings accounted for 11.9% of total closings. Closings of new and existing homes declined year-over-year in September after also falling in August year-over-year.
Pricing and Mortgage Trends
In September, the average price for new home closings was $214,526, a 3.7% fall from last year. This fall is a drop off from the 5.4% decline in August from a year earlier.
For newly sold homes, the average mortgage size fell year-over-year in contrast to average price of new homes. It sank 3.2% in September from a year earlier, reaching $204,755. Average mortgage size rose 2.6% in August 2015 from a year earlier.
Other Market Trends
As a percentage of new home closings, attached unit closings have risen from last year while single-family home closings have dropped. Attached unit closings jumped from no part of all closings in September 2014 to 5.3% of closings in September 2015. Conversely, the share belonging to single-family homes dropped to 94.7% of closings from all of closings.
The average unit size of newly sold homes climbed 3.5% year-over-year to 2,585 square feet in September 2015. In August, the average size of new homes sold went from 2,640 square feet a year earlier to 2,379 square feet.
Foreclosures and real estate owned (REO) closings fell in September from a year earlier, but remained a drag on the market. Combined, foreclosures plus REO closings made up 44.2% of existing home closings, below 48.3% a year earlier. The percentage of existing home closings involving foreclosures slid to 19.3% in September from 25.7% a year earlier while REO closings as a percentage of existing home closings gained to 24.9% from 22.6%.