The Raleigh, NC market saw a drop in new home closings year-over-year in September, but the percentage fall was less than that of August 2015, hinting that the market may be strengthening. There was a 4.3% drop in new home closings from a year earlier. This followed a 15.0% decline year-over-year in August.
A total of 6,190 new homes were sold during the 12 months that ended in September, down from 6,211 for the year that ended in August.
As a percentage of overall housing closings, new home closings accounted for 23.8%. This marks a rise from 22.3% of total closings a year earlier. For new and existing homes, closings slid in September after also declining in August year-over-year.
Pricing and Mortgage Trends
In September, the average value of new homes saw a 8.4% hike year-over-year as it grew to $330,933 per unit. This gain is an improvement over the 3.2% hike in August year-over-year.
There was a lift year-over-year in the average mortgage size on new homes along with new home prices. In September 2015, the average mortgage size was $281,629, up 9.6% from a year earlier. In August 2015, average mortgage size on newly sold homes saw a 4.0% surge year-over-year 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 20.6% of all closings in September 2014 to 30.4% of closings in September 2015. At the same time, the share belonging to single-family homes sank to 69.6% of closings from 79.4% of closings.
The average unit size of newly sold homes rose 5.7% year-over-year to 2,764 square feet in September 2015. An increase was also seen in August 2015 when the average size of new homes sold grew 14.2% to 3,060 square feet. The average size of newly sold homes moved from 2,680 square feet in August 2014 to 3,060 square feet in August 2015.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in September, but did not appear to be dragging the market. Together, foreclosures plus REO closings accounted for 9.4% of existing home closings, down from 16.6% a year earlier. The percentage of existing home closings involving foreclosures declined to 4.9% in September from 8.5% a year earlier while REO closings as a percentage of existing home closings sank to 4.4% from 8.1% a year earlier.