New home closings in the Wilmington, NC market declined year-over-year in March, and there were suggestions the market may be worsening with a percentage fall steeper than that of February 2016. Closings sank 83.8% from a year earlier to 21. This followed a 61.0% drop year-over-year in February.
A total of 705 new homes were sold during the 12 months that ended in March, down from 814 for the year that ended in February.
Out of all housing closings, new home closings accounted for 3.1%. This is a drop 14.6% of closings a year earlier. Closings of new and existing homes sank year-over-year in March after remaning steady in February year-over-year.
Pricing and Mortgage Trends
In March, the average price of newly sold homes rose 30.2% year-over-year to $363,810 per unit. This gain is an improvement over the 10.8% boost in February year-over-year.
For newly sold homes, the average mortgage size climbed year-over-year along with new home prices. In March 2016, average mortgage size increased 25.8% from a year earlier to $289,109. Average mortgage size jumped 9.7% in February 2016 from a year earlier.
Other Market Trends
Single-family homes accounted for a greater percentage of new home closings than last year. The share of new home closings belonging to single-family homes climbed from 88.5% in March 2015 to all of closings in March 2016. Meanwhile, attached units as a percentage of all new home closings declined to no part of closings from 11.5% of closings.
For all new homes sold, the average unit size climbed 34.2% year-over-year to 2,998 square feet in March 2016. In February, the average size of new homes sold went from 2,114 square feet a year earlier to 1,929 square feet.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in March, but did not appear to be dragging the market. Foreclosures and REO closings, taken together, represented 15.7% of existing closings, lower than 19.6% a year earlier. The percentage of existing home closings involving foreclosures went from 8.5% in March 2015 to 8.3% in March 2016 and REO closings as a percentage of existing home closings dropped to 7.5% from 11.0% a year earlier.