In the Cleveland, TN market, closings of new homes gained year-over-year in May, and the increase was similar to April 2016. New home closings moved from 4 a year earlier to 6 after the figure moved from 4 in April 2015 to 6 in April 2016.
A total of 57 new homes were sold during the 12 months that ended in May, up from 55 for the year that ended in April.
New home closings were 6 out of the 237 total closings, a move on a percentage basis from 4 of 195 a year earlier. Following a year-over-year increase in April, closings of new and existing homes also rose year-over-year in May.
Pricing and Mortgage Trends
The average new home price was $203,878, down from $207,775 a year earlier. This followed a 5.1% rise in April year-over-year.
Average mortgage size on newly sold homes saw a decline year-over-year from $188,494 to $145,899. Average mortgage size on new homes went from $187,707 in April 2015 to $193,607 in April 2016.
Other Market Trends
There was no change in the composition of the new home market with regard to the types of properties sold in May 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 made up 16.5% of closings, below 20.4% a year earlier. The percentage of existing home closings involving foreclosures sank to 4.8% in May from 9.9% a year earlier while REO closings as a percentage of existing home closings jumped to 11.7% from 10.5%.