In the Virginia Beach, VA market in January, new home closings sank year-over-year, and there were hints of weakening market conditions with a percentage decline steeper than that of December 2015. Closings sank 63.3% from a year earlier to 47. This came after a 33.9% fall year-over-year in December.
A total of 1,868 new homes were sold during the 12 months that ended in January, down from 1,949 for the year that ended in December.
New home closings accounted for 2.6% of overall housing closings. This is down from the 6.8% of closings a year earlier. Closings of new and existing homes slid year-over-year in January after also falling in December year-over-year.
Pricing and Mortgage Trends
The average per-unit value of new homes dropped year-over-year to $321,202 in January, a decline of 1.4% from a year earlier. This drop is a drop off from the 6.9% decline in December from a year earlier.
The average mortgage size on newly sold homes saw a hike year-over-year in contrast to new home prices. It climbed to $296,648 in January, a 1.8% boost. In December 2015, average mortgage size dropped 7.4% from a year earlier.
Other Market Trends
As a share of new home closings, single-family home closings have climbed from last year while the share belonging to attached units has fallen. Single-family home closings climbed from 63.3% of new closings in January 2015 to 83.0% of closings in January 2016. Meanwhile, attached units as a percentage of all new home closings declined to 17.0% of closings from 36.7% of closings.
There was a 18.6% fall year-over-year in the average unit size of newly sold homes to 1,834 square feet in January 2016. A drop was also seen in December 2015 when the average size of new homes sold declined 9.4% to 2,092 square feet. The average size of newly sold homes moved from 2,309 square feet in December 2014 to 2,092 square feet in December 2015.
Foreclosures and real estate owned (REO) closings declined in January from a year earlier, but remained a burden on the market. Foreclosures and REO closings, taken together, made up 38.7% of existing closings, lower than 41.9% a year earlier. The percentage of existing home closings involving foreclosures slid to 20.2% in January from 24.4% a year earlier and REO closings moved from 17.5% of existing home closings in January 2015 to 18.5% in January 2016.