New home closings slid year-over-year in September in the Memphis, TN market, but with a percentage decline not as steep as August 2015, there are suggestions that the market may be evening out. Closings dropped 39.8% from a year earlier to 53. This followed a 53.5% fall year-over-year in August.
A total of 815 new homes were sold during the 12 months that ended in September, down from 850 for the year that ended in August.
As a percentage of overall housing closings, new home closings accounted for 2.8%. This is a decline 4.4% of closings a year earlier. After rising year-over-year in August, closings of new and existing homes fell year-over-year in September.
Pricing and Mortgage Trends
Average price of newly sold homes saw a 2.5% lift year-over-year in September to $219,355 per unit. This gain is smaller than the 7.9% bump in August year-over-year.
The average mortgage size on new homes moved north year-over-year along with new home prices. In September 2015, there was a 16.4% rise in the average mortgage size, reaching $208,865. Average mortgage size gained 13.1% in August 2015 from a year earlier.
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 grew from 94.3% of new closings in September 2014 to 98.1% of closings in September 2015. Conversely, the share of new home closings belonging to attached units declined to 1.9% of closings from 5.7% of closings.
For all new homes sold, the average unit size climbed 1.7% year-over-year to 2,665 square feet in September 2015. In August, the average size of new homes sold went from 2,331 square feet a year earlier to 2,627 square feet. An increase was also seen in August 2015 when the average size of new homes sold rose 12.7% to 2,627 square feet.
Together, foreclosures plus REO closings made up 36.2% of existing home closings. In September 2014, they accounted for 36.2%. The percentage of existing home closings involving foreclosures went from 18.8% in September 2014 to 18.7% in September 2015 and REO closings as a percentage of existing home closings stayed level at 17.5%.