In the Kingsport, TN market, new home closings fell year-over-year in February, but the decline was less than the year-over-year decline in January. New home closings moved from 9 a year earlier to 3 after the figure moved from 6 in January 2015 to 1 in January 2016.
A total of 68 new homes were sold during the 12 months that ended in February, down from 74 for the year that ended in January.
On a percentage basis, new home closings as a part of total closings decreased to 1.1% from 4.3% a year earlier. For new and existing homes, closings grew year-over-year in February after also increasing in January year-over-year.
Pricing and Mortgage Trends
The average value of newly sold homes in February 2016 was $135,422, down from last year's $214,586. This came after a 55.0% decline in January from a year earlier.
Average mortgage size on newly sold homes saw a decline year-over-year from $181,561 to $76,452. Average mortgage size on new homes went from $257,905 in January 2015 to $83,385 in January 2016.
Other Market Trends
As a share of new home closings, single-family home closings have risen from last year while the share belonging to attached units has fallen.
Foreclosures and real estate owned (REO) closings continued to rise in February from a year earlier and remained a drag on the market. Together, foreclosures plus REO closings made up 33.9% of existing home closings, up from 31.7% a year earlier. The percentage of existing home closings involving foreclosures rose to 20.8% in February from 15.8% a year earlier while REO closings as a percentage of existing home closings slid to 13.1% from 15.8% a year earlier.