In August, there was an increase in closings of new homes in the Cleveland, TN market year-over-year,. Closings stood at 5 in August after being 3 a year earlier and remaining unchanged at 1 in July from a year earlier.
A total of 60 new homes were sold during the 12 months that ended in August, up from 58 for the year that ended in July.
5 of the 283 total closings were new home closings, a shift on a percentage basis from 3 out of 182 a year earlier. After dropping in July from a year earlier, closings of new and existing homes rose year-over-year in August.
Pricing and Mortgage Trends
The average value of newly sold homes in August 2015 was $182,160, down from last year's $203,600. This came after a 8.8% fall in July from a year earlier.
Average mortgage size on newly sold homes saw a decline year-over-year from $163,708 to $140,544. Average mortgage size on new homes went from $188,800 in July 2014 to $35,000 in July 2015.
Other Market Trends
There was no change in the composition of the new home market with regard to the types of properties sold in August 2015.
Foreclosures and real estate owned (REO) closings continued to rise in August from a year earlier and stayed a drag on the market. Combined, foreclosures plus REO closings accounted for 36.3% of existing home closings, above 19.0% a year earlier. The percentage of existing home closings involving foreclosures rose to 19.4% in August from 10.1% a year earlier while REO closings as a percentage of existing home closings grew to 16.9% from 8.9%.