Closings of new homes gained year-over-year in May in the Nashville, TN market, but the market seemed to show signs of evening out as the percentage grew was less than in April 2016. New home closings saw a jump of 13.0% from the year earlier to 591. In comparison, new home closings in the same month last year saw a 16.8% boost 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.
Of 4,458 total closings, 591 were of new homes. This marks a rise from 12.1% of total closings a year earlier. Following a year-over-year increase in April, closings of new and existing homes also jumped year-over-year in May.
Pricing and Mortgage Trends
The average price of newly sold homes gained year-over-year 10.4% in May to $362,752 per unit. This lift is an improvement over the 2.1% rise in April year-over-year.
For newly sold homes, the average mortgage size jumped year-over-year along with new home prices. It grew 10.7% in May from a year earlier to $299,446. Average mortgage size jumped 3.4% in April 2016 from a year earlier.
Other Market Trends
Single-family homes accounted for a greater percentage of new home closings than last year. The share of new home closings belonging to single-family homes gained from 75.7% in May 2015 to 81.6% of closings in May 2016. Meanwhile, attached units as a percentage of all new home closings dropped to 18.4% of closings from 24.3% of closings.
For all new homes sold, the average unit size grew 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 drop from a year earlier in May, but did not appear to be dragging the market. Foreclosures and REO closings, taken together, represented 8.6% of existing closings, lower than 12.3% a year earlier. The percentage of existing home closings involving foreclosures sank to 3.2% in May from 5.9% a year earlier while REO closings as a percentage of existing home closings slid to 5.4% from 6.4% a year earlier.