In May, the Memphis, TN market saw a decline year-over-year in new home closings, moving downward after little movement in April from the year earlier . New home closings saw a 29.5% drop from a year earlier to 62. Closings remained the same in April from the year earlier.
A total of 1,033 new homes were sold during the 12 months that ended in May, down from 1,059 for the year that ended in April.
Out of all housing closings, new home closings accounted for 3.2%. This is down from the a year earlier when new home closings made up 4.3% of total closings. Following a year-over-year increase in April, closings of new and existing homes dropped year-over-year in May.
Pricing and Mortgage Trends
In May, the average price of newly sold homes grew year-over-year to $261,152 per unit, a 8.1% bump. This rise is better than the 6.6% gain in April year-over-year.
The average mortgage size on newly sold homes saw a hike year-over-year along with new home prices. In May 2016, the average mortgage size was $224,153, up 2.7% from a year earlier. Average mortgage size increased 10.5% in April 2016 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. Attached unit closings jumped from no part of all closings in May 2015 to 14.5% of closings in May 2016. At the same time, the share belonging to single-family homes slid to 85.5% of closings from all of closings.
The average unit size of newly sold homes sank 25.6% year-over-year to 1,960 square feet in May 2016. In April, the average size of new homes sold went from 2,726 square feet a year earlier to 2,766 square feet.
Foreclosures and real estate owned (REO) closings fell in May from a year earlier, but stayed a drag on the market. Out of all existing home closings, foreclosures combined with REO closings accounted for 29.0% of closings, below 32.9% a year earlier. The percentage of existing home closings involving foreclosures slid to 13.2% in May from 17.0% a year earlier and REO closings moved from 16.0% of existing home closings in May 2015 to 15.8% in May 2016.