In the Chattanooga, TN market in July, new home closings declined year-over-year, and the decline was by a larger percentage than the June 2015. New home closings moved from 30 a year earlier to 12 after the figure moved from 31 in June 2014 to 15 in June 2015.
A total of 220 new homes were sold during the 12 months that ended in July, down from 238 for the year that ended in June.
New home closings were 12 out of the 957 total closings, down on a percentage basis from 30 of 938 a year earlier. Following a year-over-year increase in June, closings of new and existing homes also gained year-over-year in July.
Pricing and Mortgage Trends
The average price of new homes rose to $304,456 from last year's $275,940. This was on the heels of a move from $278,788 per unit to $277,342 from June 2014 to June 2015.
There was a decline in average mortgage size on new homes, going from $239,211 last year to $200,025 in July 2015. In June 2015, average mortgage size on newly sold homes saw a 2.4% drop from a year earlier.
Other Market Trends
As a share of new home closings, single-family home closings have risen from last year while the share belonging to attached units has fallen.
The average unit size of newly sold homes rose from 1,225 square feet a year earlier to 1,953 square feet.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in July, but did not look to be a burden on the market. Foreclosures and REO closings, taken together, made up 21.7% of existing closings, lower than 24.4% a year earlier. The percentage of existing home closings involving foreclosures went from 11.9% in July 2014 to 11.0% in July 2015 and REO closings as a percentage of existing home closings declined to 10.7% from 12.6% a year earlier.