Closings of new homes in the Greensboro, NC market declined year-over-year in June, and there were suggestions of weakening market conditions with a percentage fall steeper than that of May 2016. New home closings saw a 20.8% drop from a year earlier to 84. This came after a 15.6% decline year-over-year in May.
A total of 963 new homes were sold during the 12 months that ended in June, down from 985 for the year that ended in May.
Out of all housing closings, new home closings represented 6.6%. This is a fall 9.4% of closings a year earlier. Closings of new and existing homes increased year-over-year in June after also rising in May year-over-year.
Pricing and Mortgage Trends
For newly sold homes, the average price slid 6.9% year-over-year in June to $238,162 per unit. This drop compares to a 8.9% bump in May year-over-year.
The average mortgage size on newly sold homes saw a decline year-over-year in contrast to new home prices. In June 2016, the average mortgage size on newly sold homes saw a 3.7% fall from a year earlier. Average mortgage size rose 3.8% in May 2016 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 14.2% of all closings in June 2015 to 32.1% of closings in June 2016. Conversely, the share belonging to single-family homes dropped to 67.9% of closings from 85.8% of closings.
The average unit size of newly sold homes sank 30.4% year-over-year to 1,829 square feet in June 2016. The average size of newly sold homes moved from 2,476 square feet in May 2015 to 2,332 square feet in May 2016.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in June, but did not appear to be dragging the market. Foreclosures and REO closings, taken together, made up 16.8% of existing closings, lower than 25.5% a year earlier. The percentage of existing home closings involving foreclosures slid to 8.4% in June from 12.5% a year earlier while REO closings as a percentage of existing home closings dropped to 8.4% from 13.0% a year earlier.