The Wilmington, NC market saw a drop in new home closings year-over-year in August, but with a percentage decline less steep than July 2015, there are signals the market may be evening out. There was a 54.1% fall in new home closings from a year earlier. In comparison, new home closings in the same month last year saw a 57.3% decline year-over-year in July.
A total of 732 new homes were sold during the 12 months that ended in August, down from 778 for the year that ended in July.
Out of all housing closings, new home closings accounted for 9.8%. A year earlier, new home closings made up 10.4% of total closings. Following a year-over-year decline in July, closings of new and existing homes also slid year-over-year in August.
Pricing and Mortgage Trends
The average price of new homes grew year-over-year in August to $279,131 per unit, a rise of 13.1%. This lift compares to a 2.6% decline in July from a year earlier.
The average mortgage size on newly sold homes jumped year-over-year along with the average price of new homes. The average mortgage size saw a 7.4% surge year-over-year to $231,023 in August. In July 2015, average mortgage size on newly sold homes saw a 1.1% hike year-over-year from a year earlier.
Other Market Trends
As a share of new home closings, single-family home closings have climbed from last year while the share belonging to attached units has fallen. The share of new home closings belonging to single-family homes jumped from 90.6% in August 2014 to all of closings in August 2015. At the same time, the share of new home closings belonging to attached units declined to no part of closings from 9.4% of closings.
For all new homes sold, the average unit size rose 4.8% year-over-year to 2,155 square feet in August 2015. In July, the average size of new homes sold went from 2,135 square feet a year earlier to 1,754 square feet.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in August, but did not appear to be dragging the market. Together, foreclosures plus REO closings represented 10.3% of existing home closings, down from 18.0% a year earlier. The percentage of existing home closings involving foreclosures sank to 3.6% in August from 7.8% a year earlier while REO closings as a percentage of existing home closings dropped to 6.7% from 10.2% a year earlier.