In the Charlottesville, VA market in June, new home closings gained year-over-year, bouncing back from a decline in May 2015. New home closings saw a 3.1% climb from a year earlier to 33. This was after the housing market saw a 38.5% drop year-over-year in May.
A total of 191 new homes were sold during the 12 months that ended in June, up from 190 for the year that ended in May.
Out of all housing closings, new home closings accounted for 7.1%. This is down from the a year earlier when new home closings represented 10.6% of total closings. Following a year-over-year increase in May, closings of new and existing homes also jumped year-over-year in June.
Pricing and Mortgage Trends
For newly sold homes, the average price sank 18.6% year-over-year in June to $390,370 per unit. This decline is larger than the 14.7% fall in May from a year earlier.
Average mortgage size on new homes saw a decline year-over-year in contrast to prices of new homes. In June 2015, average mortgage size on new homes sold was $311,763, down 19.2% from a year earlier. Average mortgage size sank 11.2% in May 2015 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 jumped from 87.5% in June 2014 to 97.0% of closings in June 2015. At the same time, the share of new home closings belonging to attached units dropped to 3.0% of closings from 12.5% of closings.
There was a move in the average unit size of newly sold homes from 2,944 square feet in June 2014 to 2,973 square feet in June 2015. In May 2015, the average size of newly sold homes sank 32.7% from the year earlier. In May, the average size of new homes sold went from 2,606 square feet a year earlier to 1,753 square feet.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in June, but did not appear to be dragging the market. Together, foreclosures plus REO closings accounted for 11.1% of existing home closings, down from 12.6% a year earlier. The percentage of existing home closings involving foreclosures went from 7.4% in June 2014 to 6.5% in June 2015 and REO closings moved from 5.2% of existing home closings in June 2014 to 4.6% in June 2015.