In August, there was a drop year-over-year in new home closings in the Chattanooga, TN market, but the decline was less than the year-over-year decline in July. New home closings moved from 22 a year earlier to 19 after the figure moved from 30 in July 2014 to 12 in July 2015.
A total of 219 new homes were sold during the 12 months that ended in August, down from 222 for the year that ended in July.
Of the total number of closings, new home closings made up 2.1%. A year earlier, new home closings represented 2.7% of total closings. Following a year-over-year increase in July, closings of new and existing homes also grew year-over-year in August.
Pricing and Mortgage Trends
The average price of new homes rose year-over-year in August to $301,437 per unit, a rise of 6.7%. This boost is smaller than the 10.3% hike in July year-over-year.
Average mortgage size on new homes slid year-over-year in contrast to new home prices. In August 2015, average mortgage size on new homes sold was $181,805, down 27.7% from a year earlier. Average mortgage size on new homes went from $239,211 in July 2014 to $200,025 in July 2015.
Other Market Trends
Single-family homes accounted for a greater percentage of new home closings than last year. The share of new home closings belonging to single-family homes rose from 90.9% in August 2014 to all of closings in August 2015. Conversely, the share of new home closings belonging to attached units dropped to no part of closings from 9.1% of closings.
For all new homes sold, the average unit size rose more than twofold year-over-year to 5,327 square feet in August 2015. In July, the average size of new homes sold went from 1,225 square feet a year earlier to 1,953 square feet. An increase in both the average size and price of newly sold homes was also seen in July 2015 when the average size climbed 59.4% to 1,953 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 accounted for 22.3% of existing home closings, down from 28.2% a year earlier. The percentage of existing home closings involving foreclosures fell to 8.2% in August from 15.0% a year earlier and REO closings moved from 13.2% of existing home closings in August 2014 to 14.2% in August 2015.