There was an increase in new home closings in the Burlington, NC market in January year-over-year, and the percentage gain, which was better than December 2015, suggested the market may be improving. Closings gained 47.4% from a year earlier to 28. This was after the housing market saw a 24.1% jump year-over-year in December.
A total of 395 new homes were sold during the 12 months that ended in January, up from 386 for the year that ended in December.
As a percentage of overall housing closings, new home closings represented 18.3%. This marks a rise from 13.8% of total closings a year earlier. Following a year-over-year increase in December, closings of new and existing homes also jumped year-over-year in January.
Pricing and Mortgage Trends
Average value of new homes sold in January was $209,436 per unit, down 1.4% from a year earlier. This fall compares to a 25.4% surge in December year-over-year.
For newly sold homes, the average mortgage size rose year-over-year in contrast to new home prices. In January 2016, the average mortgage size was $197,066, up 3.7% from a year earlier. In December 2015, average mortgage size increased 18.7% 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. The share of new home closings belonging to single-family homes rose from 84.2% in January 2015 to 85.7% of closings in January 2016. Meanwhile, attached units as a percentage of all new home closings sank to 14.3% of closings from 15.8% of closings.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in January, but did not look to be a burden on the market. Combined, foreclosures plus REO closings represented 24.8% of existing home closings, below 37.8% a year earlier. The percentage of existing home closings involving foreclosures slid to 15.2% in January from 19.3% a year earlier while REO closings as a percentage of existing home closings declined to 9.6% from 18.5% a year earlier.