New home closings in the Wilmington, NC market slid year-over-year in May, but with a percentage decline less steep than April 2016, there are signals the market may be evening out. There was a 67.8% drop in new home closings from a year earlier. This followed a 69.7% drop year-over-year in April.
A total of 586 new homes were sold during the 12 months that ended in May, down from 645 for the year that ended in April.
New home closings represented 2.9% of overall housing closings. This is a fall 10.0% of closings a year earlier. Following a decline in April year-over-year, closings of new and existing homes rose year-over-year in May.
Pricing and Mortgage Trends
Average value of new homes sold in May was $285,125 per unit, down 1.1% from a year earlier. This decline compares to a 12.8% bump in April year-over-year.
The average mortgage size on new homes moved north year-over-year in contrast to new home prices. The average mortgage size rose to $269,224 in May, marking a 12.3% rise compared with a year earlier. In April 2016, average mortgage size on newly sold homes saw a 17.2% bump year-over-year from a year earlier.
Other Market Trends
Single-family homes accounted for a greater percentage of new home closings than last year. Single-family home closings jumped from 96.6% of new closings in May 2015 to all of closings in May 2016. Meanwhile, attached units as a percentage of all new home closings fell to no part of closings from 3.4% of closings.
There was a 14.5% drop year-over-year in the average unit size of newly sold homes to 1,934 square feet in May 2016. The average size of newly sold homes moved from 2,322 square feet in April 2015 to 2,003 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. Out of all existing home closings, foreclosures combined with REO closings accounted for 11.8% of closings, below 15.5% a year earlier. The percentage of existing home closings involving foreclosures went from 5.9% in May 2015 to 5.3% in May 2016 and REO closings as a percentage of existing home closings declined to 6.6% from 9.6% a year earlier.