In June, the Durham, NC market saw a drop year-over-year in new home closings, moving downward after a surge in May 2016. Closings dropped 8.9% from a year earlier to 144. In comparison, new home closings in the same month last year saw a 24.2% boost year-over-year in May.
A total of 1,843 new homes were sold during the 12 months that ended in June, down from 1,857 for the year that ended in May.
New home closings accounted for 12.4% of overall housing closings. This is down from the a year earlier when new home closings made up 13.7% of total closings. After increasing in May from a year earlier, closings of new and existing homes remained level in June.
Pricing and Mortgage Trends
Average price of newly sold homes had a 10.7% boost year-over-year to $364,940 per unit in June. This lift follows a move from $337,866 per unit in May 2015 to $336,800 in May 2016.
The average mortgage size on newly sold homes gained year-over-year along with the average price of new homes. In June 2016, the average mortgage size was $298,458, a 18.5% surge from a year earlier. Average mortgage size dropped 3.6% in May 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. Attached unit closings gained from 21.5% of all closings in June 2015 to 24.3% of closings in June 2016. Meanwhile, single-family home closings as a percentage of all new home closings slid to 75.7% of closings from 78.5% of closings.
The average unit size of newly sold homes climbed 3.4% year-over-year to 2,800 square feet in June 2016. In May, the average size of new homes sold went from 2,857 square feet a year earlier to 2,020 square feet.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in June, but did not look to be a burden on the market. Foreclosures and REO closings, taken together, accounted for 8.0% of existing closings, lower than 10.4% a year earlier. The percentage of existing home closings involving foreclosures declined to 3.6% in June from 6.3% a year earlier and REO closings moved from 4.1% of existing home closings in June 2015 to 4.3% in June 2016.