New home closings in the Spartanburg, SC market sank year-over-year in February, and the decline was by a larger percentage than the January 2016. New home closings moved from 49 a year earlier to 6 after the figure moved from 36 in January 2015 to 6 in January 2016.

A total of 468 new homes were sold during the 12 months that ended in February, down from 511 for the year that ended in January.

On a percentage basis, new home closings as a part of total closings decreased to 2.4% from 13.7% a year earlier. For new and existing homes, closings dropped in February after also declining in January year-over-year.

Pricing and Mortgage Trends

The average new home value went from $195,205 last year to $258,445. This followed a 35.5% boost in January year-over-year.

Average mortgage size on new homes rose from $178,093 to $214,841. Average mortgage size on new homes went from $188,431 in January 2015 to $233,722 in January 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 February 2016.

Foreclosures and real estate owned (REO) closings decreased in February from a year earlier, but remained a burden on the market. Together, foreclosures plus REO closings accounted for 25.6% of existing home closings, down from 32.5% a year earlier. The percentage of existing home closings involving foreclosures fell to 7.3% in February from 19.2% a year earlier while REO closings as a percentage of existing home closings rose to 18.3% from 13.3%.

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