Closings of new homes in the Knoxville, TN market dropped year-over-year in November, and there were suggestions of weakening market conditions with a percentage fall steeper than that of October 2015. New home closings saw a decline of 28.6% from the year earlier to 35. This came after a 19.4% decline year-over-year in October.
A total of 734 new homes were sold during the 12 months that ended in November, down from 748 for the year that ended in October.
Out of all housing closings, new home closings represented 4.3%. This is down from the a year earlier when new home closings accounted for 6.2% of total closings. After remaining steady in October from a year earlier, closings of new and existing homes grew in November.
Pricing and Mortgage Trends
The average per-unit price of newly sold homes grew year-over-year to $280,694 in November, up 13.3% from last year. This hike is better than the 1.1% surge in October year-over-year.
For newly sold homes, the average mortgage size saw a hike year-over-year along with new home prices. Average mortgage size jumped 3.8% to $229,822 in November from a year earlier. Average mortgage size dropped 6.9% in October 2015 from a year earlier.
Other Market Trends
Closings of attached units, as a percentage of new home closings, have risen from last year while closings of single-family homes have fallen. The share of new home closings belonging to attached units climbed from 6.1% of closings in November 2014 to 31.4% of closings in November 2015. Conversely, the share belonging to single-family homes declined to 68.6% of closings from 93.9% of closings.
The average unit size of newly sold homes slid 3.3% year-over-year to 2,190 square feet in November 2015. For newly sold homes, an average size decline contrasting with an average price bump was also seen in October 2015 when the average size of newly sold homes declined 3.3% to 2,229 square feet. The average size of newly sold homes moved from 2,304 square feet in October 2014 to 2,229 square feet in October 2015.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in November, but did not look to be a burden on the market. Together, foreclosures plus REO closings represented 22.2% of existing home closings, down from 24.1% a year earlier. The percentage of existing home closings involving foreclosures went from 11.4% in November 2014 to 11.0% in November 2015 and REO closings as a percentage of existing home closings sank to 11.2% from 12.7% a year earlier.