In the Nashville, TN market, closings of new homes grew year-over-year in November, and the percentage boost that was sharper than October 2015 seems to indicate improving market conditions. New home closings saw a hike of 9.6% from the year earlier to 458. This came on the heels of a 7.6% jump year-over-year in October.
A total of 5,711 new homes were sold during the 12 months that ended in November, up from 5,671 for the year that ended in October.
As a percentage of overall housing closings, new home closings accounted for 14.9%. This is a rise from 13.6% of closings a year earlier. After increasing in October from a year earlier, closings of new and existing homes remained level in November.
Pricing and Mortgage Trends
From November 2014 to November 2015, the average price of newly sold homes went from $332,956 to $330,892. This followed a 2.9% gain in October year-over-year.
There was a boost year-over-year in the average mortgage size on new homes in contrast to new home prices. In November 2015, the average mortgage size on newly sold homes saw a 4.8% surge from a year earlier. In October 2015, average mortgage size on newly sold homes saw a 1.1% bump year-over-year from a year earlier.
Other Market Trends
Closings of attached units, as a percentage of new home closings, have gained from last year while closings of single-family homes have slumped. The share of new home closings belonging to attached units climbed from 15.1% of closings in November 2014 to 17.7% of closings in November 2015. Conversely, the share belonging to single-family homes sank to 82.3% of closings from 84.9% of closings.
There was a 34.3% drop year-over-year in the average unit size of newly sold homes to 1,813 square feet in November 2015. The average size of newly sold homes moved from 2,677 square feet in October 2014 to 1,967 square feet in October 2015.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in November, but did not appear to be dragging the market. Foreclosures and REO closings, taken together, represented 14.4% of existing closings, lower than 22.7% a year earlier. The percentage of existing home closings involving foreclosures went from 7.7% in November 2014 to 8.0% in November 2015 and REO closings as a percentage of existing home closings sank to 6.4% from 15.0% a year earlier.