In the Nashville, TN market in May, closings of new homes rose year-over-year, but the increased on a percentage basis less sharlpy than April 2016, showing signs of market stabilization. Closings rose 13.0% from a year earlier to 591. This came on the heels of a 16.8% jump year-over-year in April.
A total of 6,763 new homes were sold during the 12 months that ended in May, up from 6,695 for the year that ended in April.
As a percentage of overall housing closings, new home closings represented 13.3%. This is better than the 12.1% of closings a year earlier. For new and existing homes, closings gained year-over-year in May after also increasing in April year-over-year.
Pricing and Mortgage Trends
The average price of newly sold homes rose year-over-year 10.4% in May to $362,752 per unit. This hike is an improvement over the 2.1% surge in April year-over-year.
The average mortgage size on newly sold homes saw a gain year-over-year along with new home prices. In May 2016, the average mortgage size was $299,446, a 10.7% hike from a year earlier. In April 2016, average mortgage size gained 3.4% 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 jumped from 75.7% in May 2015 to 81.6% of closings in May 2016. At the same time, the share of new home closings belonging to attached units fell to 18.4% of closings from 24.3% of closings.
The average unit size of newly sold homes rose 2.7% year-over-year to 2,535 square feet in May 2016. The average size of newly sold homes moved from 2,695 square feet in April 2015 to 2,511 square feet in April 2016.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in May, but did not appear to be dragging the market. Foreclosures and REO closings, taken together, made up 8.6% of existing closings, lower than 12.3% a year earlier. The percentage of existing home closings involving foreclosures dropped to 3.2% in May from 5.9% a year earlier while REO closings as a percentage of existing home closings declined to 5.4% from 6.4% a year earlier.