Closings of new homes fell year-over-year in June in the Raleigh, NC market, a move downward following a surge in May 2016. Closings sank 6.8% from a year earlier to 566. This came on the heels of a 14.9% climb year-over-year in May.
A total of 6,413 new homes were sold during the 12 months that ended in June, down from 6,454 for the year that ended in May.
Of the total number of closings, new home closings made up 19.9%. They made up 20.8% of closings a year earlier. Following a year-over-year rise in May, closings of new and existing homes dropped year-over-year in June.
Pricing and Mortgage Trends
The average price of newly sold homes climbed year-over-year 8.9% in June to $347,723 per unit. This surge is better than the 6.0% hike in May year-over-year.
Along with new home prices, there was an increase year-over-year in the average mortgage size on newly sold homes. The average mortgage size saw a 6.1% lift year-over-year to $280,819 in June. In May 2016, average mortgage size on newly sold homes saw a 1.9% rise year-over-year from a year earlier.
Other Market Trends
Closings of attached units, as a percentage of new home closings, have grown from last year while closings of single-family homes have slumped. The share of new home closings belonging to attached units gained from 23.7% of closings in June 2015 to 27.0% of closings in June 2016. Conversely, the share belonging to single-family homes fell to 73.0% of closings from 76.3% of closings.
The average unit size of newly sold homes jumped 17.2% year-over-year to 3,114 square feet in June 2016. An increase in both the average size and price of newly sold homes was also seen in May 2016 when the average size gained 13.5% to 3,037 square feet. In May, the average size of new homes sold went from 2,675 square feet a year earlier to 3,037 square feet.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in June, but did not appear to be dragging the market. Foreclosures and REO closings, taken together, accounted for 7.8% of existing closings, lower than 10.5% a year earlier. The percentage of existing home closings involving foreclosures declined to 3.9% in June from 5.7% a year earlier and REO closings moved from 4.8% of existing home closings in June 2015 to 3.9% in June 2016.