New home closings in the Raleigh, NC market dropped year-over-year in January, and the percentage decline, which was steeper than December 2015, gave signs of weakening market conditions. Closings fell 20.6% from a year earlier to 319. This came after a 4.2% drop year-over-year in December.
A total of 6,118 new homes were sold during the 12 months that ended in January, down from 6,201 for the year that ended in December.
Out of all housing closings, new home closings accounted for 23.3%. This is down from the a year earlier when new home closings made up 24.3% of total closings. For new and existing homes, closings fell in January after also declining in December year-over-year.
Pricing and Mortgage Trends
The average per-unit value of new homes sank year-over-year to $310,529 in January, a drop of 1.4% from a year earlier. This fall compares to a 1.3% gain in December year-over-year.
For newly sold homes, the average mortgage size saw a decline year-over-year in contrast to new home prices. It declined to $248,888 in January, a 4.4% drop. Average mortgage size increased 2.6% in December 2015 from a year earlier.
Other Market Trends
There was no change in the composition of the new home market with regard to the types of properties sold in January 2016. Single-family home closings have represented 75.9% of new home closings while attached unit closings have accounted for 24.1% of closings.
For all new homes sold, the average unit size declined 4.2% year-over-year to 2,490 square feet in January 2016. In December, the average size of new homes sold went from 2,648 square feet a year earlier to 2,549 square feet.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in January, but did not look to be a burden on the market. Together, foreclosures plus REO closings made up 14.0% of existing home closings, down from 20.5% a year earlier. The percentage of existing home closings involving foreclosures slid to 7.7% in January from 9.8% a year earlier while REO closings as a percentage of existing home closings dropped to 6.3% from 10.7% a year earlier.