In June, the Virginia Beach, VA market saw a fall year-over-year in new home closings, but the percentage drop was not as steep as May 2016, giving suggestion that the market may be leveling out. There was a 51.6% decline in new home closings from a year earlier. This followed a 55.8% fall year-over-year in May.
A total of 1,434 new homes were sold during the 12 months that ended in June, down from 1,547 for the year that ended in May.
New home closings represented 3.9% of overall housing closings. This is down from the 6.9% of closings a year earlier. Closings of new and existing homes fell year-over-year in June after remaning steady in May year-over-year.
Pricing and Mortgage Trends
The average price of new homes dropped 8.2% year-over-year in June to $300,488 per unit. This fall compares to a 3.0% rise in May year-over-year.
For newly sold homes, the average mortgage size saw a surge year-over-year in contrast to new home prices. The average mortgage size saw a 1.2% bump year-over-year to $307,793 in June. In May 2016, average mortgage size on newly sold homes saw a 10.4% bump year-over-year 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 gained from 75.3% in June 2015 to 87.7% of closings in June 2016. Meanwhile, attached units as a percentage of all new home closings fell to 12.3% of closings from 24.7% of closings.
The average unit size of newly sold homes slid 2.8% year-over-year to 2,265 square feet in June 2016. In May, the average size of new homes sold went from 2,394 square feet a year earlier to 2,148 square feet.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in June, but did not look to be a burden on the market. Out of all existing home closings, foreclosures combined with REO closings accounted for 20.4% of closings, below 26.6% a year earlier. The percentage of existing home closings involving foreclosures dropped to 10.6% in June from 13.9% a year earlier while REO closings as a percentage of existing home closings declined to 9.8% from 12.6% a year earlier.