In the Knoxville, TN market in December, closings of new homes slid year-over-year, and the percentage fall that was steeper than November 2015 gave implications of worsening market conditions. New home closings saw a 50.8% drop from a year earlier to 32. This came after a 28.6% drop year-over-year in November.
A total of 697 new homes were sold during the 12 months that ended in December, down from 730 for the year that ended in November.
Out of all housing closings, new home closings represented 3.1%. This is down from the a year earlier when new home closings accounted for 6.9% of total closings. Following a year-over-year increase in November, closings of new and existing homes also jumped year-over-year in December.
Pricing and Mortgage Trends
The average per-unit value of new homes sank year-over-year to $267,116 in December, a fall of 5.9% from a year earlier. This fall compares to a 15.5% rise in November year-over-year.
Average mortgage size on new homes declined year-over-year in contrast to new home prices. Average mortgage size slid by 15.0% from a year earlier, settling at $201,824 in December. Average mortgage size rose 6.4% in November 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 increased from 12.3% of all closings in December 2014 to a quarter of closings in December 2015. Meanwhile, single-family home closings as a percentage of all new home closings slid to three quarters of closings from 87.7% of closings.
For all new homes sold, the average unit size sank 23.2% year-over-year to 1,958 square feet in December 2015. In November, the average size of new homes sold went from 2,265 square feet a year earlier to 2,208 square feet.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in December, but did not look to be a burden on the market. Out of all existing home closings, foreclosures combined with REO closings made up 24.1% of closings, below 30.0% a year earlier. The percentage of existing home closings involving foreclosures fell to 7.9% in December from 11.2% a year earlier while REO closings as a percentage of existing home closings slid to 16.2% from 18.8% a year earlier.