New home closings fell year-over-year in July in the Raleigh, NC market, and the percentage drop was steeper than June 2016, giving suggestion the market may be worsening. There was a 11.5% decline in new home closings from a year earlier. This was after the housing market saw a 5.8% decline year-over-year in June.
A total of 6,375 new homes were sold during the 12 months that ended in July, down from 6,432 for the year that ended in June.
As a percentage of overall housing closings, new home closings represented 17.1%. This is a drop 19.2% of closings a year earlier. Closings of new and existing homes remained steady in July after being unchanged in June from a year earlier.
Pricing and Mortgage Trends
The average price of new homes grew year-over-year 4.6% in July to $348,200 per unit. This bump is smaller than the 8.5% hike in June year-over-year.
The average mortgage size on newly sold homes saw a lift year-over-year along with new home prices. Average mortgage size jumped 6.1% to $282,632 in July from a year earlier. Average mortgage size gained 5.8% in June 2016 from a year earlier.
Other Market Trends
The share of new home closings made up by attached units has risen while the share belonging to single-family homes has fallen. The share of new home closings belonging to attached units increased from 17.0% of closings in July 2015 to 21.5% of closings in July 2016. At the same time, the share belonging to single-family homes slid to 78.5% of closings from 83.0% of closings.
For all new homes sold, the average unit size climbed 9.0% year-over-year to 2,984 square feet in July 2016. An increase was also seen in June 2016 when the average size of new homes sold rose 17.2% to 3,114 square feet. The average size of newly sold homes moved from 2,657 square feet in June 2015 to 3,114 square feet in June 2016.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in July, but did not appear to be dragging the market. Combined, foreclosures plus REO closings accounted for 6.7% of existing home closings, below 10.2% a year earlier. The percentage of existing home closings involving foreclosures went from 4.9% in July 2015 to 3.9% in July 2016 and REO closings as a percentage of existing home closings slid to 2.8% from 5.3% a year earlier.