In the Raleigh, NC market, closings of new homes fell year-over-year in April, and there were suggestions of weakening market conditions with a percentage fall steeper than that of March 2016. New home closings saw a 30.9% drop from a year earlier to 363. This followed a 1.2% decline year-over-year in March.
A total of 6,137 new homes were sold during the 12 months that ended in April, down from 6,299 for the year that ended in March.
Out of all housing closings, new home closings accounted for 19.0%. This is a drop 22.5% of closings a year earlier. Closings of new and existing homes declined year-over-year in April after also falling in March year-over-year.
Pricing and Mortgage Trends
The average price of new homes grew year-over-year in April to $341,682 per unit, a rise of 9.4%. This bump follows a move from $314,672 per unit to $315,540 from March 2015 to March 2016.
The average mortgage size on new homes moved north year-over-year along with new home prices. In April 2016, the average mortgage size was $287,137, up 11.6% from a year earlier. Average mortgage size went from $258,639 in March 2015 to $258,181 in March 2016.
Other Market Trends
The percentage of new home closings belonging to single-family homes has risen from last year while the portion of new home closings belonging to attached units has dropped. Single-family home closings grew from 76.6% of new closings in April 2015 to 81.0% of closings in April 2016. At the same time, the share of new home closings belonging to attached units dropped to 19.0% of closings from 23.4% of closings.
There was a 8.4% hike year-over-year in the average unit size of newly sold homes to 2,811 square feet in April 2016. The average size of newly sold homes moved from 2,697 square feet in March 2015 to 2,690 square feet in March 2016.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in April, but did not appear to be dragging the market. Together, foreclosures plus REO closings accounted for 8.6% of existing home closings, down from 12.8% a year earlier. The percentage of existing home closings involving foreclosures declined to 4.6% in April from 6.8% a year earlier while REO closings as a percentage of existing home closings sank to 4.0% from 6.0% a year earlier.