The Knoxville, TN market saw an increase in closings of new homes in August year-over-year, but the percentage edged up less than July 2015, suggesting the market may be leveling out. New home closings saw a boost of 17.5% from the year earlier to 67. This came on the heels of a 22.2% climb year-over-year in July.
A total of 766 new homes were sold during the 12 months that ended in August, up from 756 for the year that ended in July.
Out of all housing closings, new home closings accounted for 6.0%. A year earlier, new home closings represented 5.3% of total closings. Following a year-over-year increase in July, closings of new and existing homes also jumped year-over-year in August.
Pricing and Mortgage Trends
Average price of newly sold homes saw a 7.4% boost year-over-year in August to $278,248 per unit. This lift is an improvement over the 3.9% hike in July year-over-year.
The average mortgage size on newly sold homes saw a surge year-over-year along with new home prices. In August 2015, the average mortgage size was $237,813, up 8.1% from a year earlier. In July 2015, average mortgage size rose 6.0% from a year earlier.
Other Market Trends
The percentage of new home closings belonging to single-family homes has risen from last year while the portion of new home closings belonging to attached units has dropped. The share of new home closings belonging to single-family homes increased from 93.0% in August 2014 to 97.0% of closings in August 2015. At the same time, the share of new home closings belonging to attached units slid to 3.0% of closings from 7.0% of closings.
The average unit size of newly sold homes gained 4.6% year-over-year to 2,432 square feet in August 2015. The average size of newly sold homes moved from 2,448 square feet in July 2014 to 2,575 square feet in July 2015. An increase in both the average size and price of newly sold homes was also seen in July 2015 when the average size rose 5.2% to 2,575 square feet.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in August, but did not look to be a burden on the market. Combined, foreclosures plus REO closings made up 18.6% of existing home closings, below 22.3% a year earlier. The percentage of existing home closings involving foreclosures sank to 8.9% in August from 12.2% a year earlier and REO closings moved from 10.1% of existing home closings in August 2014 to 9.7% in August 2015.