In the Virginia Beach, VA market in August, new home closings increased year-over-year, and the percentage boost, which was better than July 2015, suggested the market may be improving. New home closings saw a 40.0% jump from a year earlier to 182. This was after the housing market saw a 8.3% climb year-over-year in July.
A total of 1,887 new homes were sold during the 12 months that ended in August, up from 1,835 for the year that ended in July.
Out of all housing closings, new home closings made up 7.2%. This is an increase on a percentage basis, as new home closings were 5.6% of total closings a year ago. For new and existing homes, closings increased year-over-year in August after also increasing in July year-over-year.
Pricing and Mortgage Trends
The average per-unit price of newly sold homes grew year-over-year to $362,555 in August, up 3.0% from last year. This bump follows a move from $355,092 per unit to $354,176 from July 2014 to July 2015.
In August 2015, average mortgage size on new homes went from $310,162 in August 2014 to $311,504 in August 2015. Average mortgage size fell 3.9% in July 2015 from a year earlier.
Other Market Trends
There has not been much movement in the composition of the market with regard of the types of properties sold. From a year ago, single-family home closings have moved from 76.2% of new home closings to 76.4% of closings while attached units have gone from 23.8% of closings to 23.6% of closings.
The average unit size of newly sold homes slid 3.2% year-over-year to 2,425 square feet in August 2015. The average size of newly sold homes moved from 2,499 square feet in July 2014 to 2,466 square feet in July 2015.
Foreclosures and real estate owned (REO) closings declined in August from a year earlier, but remained a drag on the market. Out of all existing home closings, foreclosures combined with REO closings accounted for 25.1% of closings, below 32.6% a year earlier. The percentage of existing home closings involving foreclosures declined to 11.8% in August from 15.8% a year earlier while REO closings as a percentage of existing home closings sank to 13.3% from 16.8% a year earlier.