In the Memphis, TN market in March, new home closings climbed year-over-year, rallying back from a decline in February 2016. New home closings saw a 38.0% climb from a year earlier to 98. This followed a 40.5% fall year-over-year in February.
A total of 837 new homes were sold during the 12 months that ended in March, up from 810 for the year that ended in February.
As a percentage of overall housing closings, new home closings made up 5.1%. This is an increase on a percentage basis, as new home closings were 4.0% of total closings a year ago. Following a year-over-year increase in February, closings of new and existing homes also gained year-over-year in March.
Pricing and Mortgage Trends
In March, the average price for new home closings was $230,425, a 2.6% fall from last year. This drop follows a move from $231,199 per unit in February 2015 to $229,111 in February 2016.
Average mortgage size on new homes dropped year-over-year in contrast to new home prices. It dropped 4.5% in March from a year earlier, reaching $196,841. Average mortgage size went from $201,248 in February 2015 to $199,955 in February 2016.
Other Market Trends
As a percentage of new home closings, attached unit closings have climbed from last year while single-family home closings have dropped. The share of new home closings belonging to attached units rose from 1.4% of closings in March 2015 to 12.2% of closings in March 2016. Meanwhile, single-family home closings as a percentage of all new home closings fell to 87.8% of closings from 98.6% of closings.
For all new homes sold, the average unit size sank 36.1% year-over-year to 1,744 square feet in March 2016. In February, the average size of new homes sold went from 2,689 square feet a year earlier to 2,923 square feet.
Foreclosures and real estate owned (REO) closings decreased in March from a year earlier, but stayed a drag on the market. Together, foreclosures plus REO closings made up 36.1% of existing home closings, down from 40.2% a year earlier. The percentage of existing home closings involving foreclosures dropped to 16.0% in March from 20.4% a year earlier and REO closings moved from 19.8% of existing home closings in March 2015 to 20.1% in March 2016.