In the Raleigh, NC market, closings of new homes fell year-over-year in April, and the percentage fall worsened from March 2016, indicating the market may be weakening. Closings sank 30.9% from a year earlier to 363. This was after the housing market saw a 1.2% drop year-over-year in March.
A total of 6,137 new homes were sold during the 12 months that ended in April, down from 6,299 for the year that ended in March.
As a percentage of overall housing closings, new home closings represented 19.0%. This is down from the 22.5% of closings a year earlier. Following a year-over-year decline in March, closings of new and existing homes also declined year-over-year in April.
Pricing and Mortgage Trends
For newly sold homes, the average price increased 9.4% year-over-year in April to $341,682 per unit. This rise follows a move from $314,672 per unit to $315,540 from March 2015 to March 2016.
Along with new home prices, there was an increase year-over-year in the average mortgage size on newly sold homes. The average mortgage size saw a 11.6% surge year-over-year to $287,137 in April. It went from $258,639 to $258,181 from March 2015 to March 2016.
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. Single-family home closings gained from 76.6% of new closings in April 2015 to 81.0% of closings in April 2016. At the same time, the share of new home closings belonging to attached units slid to 19.0% of closings from 23.4% of closings.
There was a 8.4% boost year-over-year in the average unit size of newly sold homes to 2,811 square feet in April 2016. In March, the average size of new homes sold went from 2,697 square feet a year earlier to 2,690 square feet.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in April, but did not look to be a burden on the market. Combined, foreclosures plus REO closings represented 8.6% of existing home closings, below 12.8% a year earlier. The percentage of existing home closings involving foreclosures dropped to 4.6% in April from 6.8% a year earlier while REO closings as a percentage of existing home closings slid to 4.0% from 6.0% a year earlier.