New home closings in the Memphis, TN market remained steady year-over-year in April, staying consistent after having increased in March from the year earlier. Closings were unchanged from last year at 72. Closings saw a 64.8% climb in the same month last year.

A total of 1,058 new homes were sold during the 12 months that ended in April, equal to the number of new homes sold for the year that ended in March.

New home closings accounted for 3.8% of overall closings, unchanged from a year earlier. Closings of new and existing homes stayed level after increasing in March year-over-year.

Pricing and Mortgage Trends

In April, the average value of new homes saw a 6.6% gain year-over-year as it grew to $256,033 per unit. This rise compares to a 1.3% drop in March from a year earlier.

There was a lift year-over-year in the average mortgage size on new homes along with new home prices. It increased 10.5% in April from a year earlier to $230,091. In March 2016, average mortgage size dropped 1.6% from a year earlier.

Other Market Trends

As a percentage of new home closings, attached unit closings have risen from last year while single-family home closings have dropped. The share of new home closings belonging to attached units gained from no part of closings in April 2015 to 11.1% of closings in April 2016. At the same time, the share belonging to single-family homes declined to 88.9% of closings from all of closings.

There was a 1.5% boost year-over-year in the average unit size of newly sold homes to 2,766 square feet in April 2016. In March, the average size of new homes sold went from 2,674 square feet a year earlier to 1,902 square feet.

Foreclosures and real estate owned (REO) closings fell in April from a year earlier, but stayed a drag on the market. Combined, foreclosures plus REO closings made up 34.0% of existing home closings, below 40.0% a year earlier. The percentage of existing home closings involving foreclosures fell to 16.4% in April from 20.0% a year earlier while REO closings as a percentage of existing home closings slid to 17.6% from 19.9% a year earlier.

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