New home closings in the Winston-Salem, NC market remained steady year-over-year in May, showing signs of leveling out after falling in April from the year earlier. Closings were unchanged from last year at 81. New home closings dropped 36.3%in April year-over-year.
A total of 808 new homes were sold during the 12 months that ended in May, equal to the number of new homes sold for the year that ended in April.
As a percentage of overall housing closings, new home closings accounted for 9.2%. This is down from the a year earlier when new home closings accounted for 11.1% of total closings. After dropping in April from a year earlier, closings of new and existing homes increased year-over-year in May.
Pricing and Mortgage Trends
The average price of new homes grew year-over-year in May to $220,737 per unit, a rise of 12.8%. This gain is smaller than the 16.2% hike in April year-over-year.
Average mortgage size on new homes rose year-over-year along with new home prices. It increased 7.5% in May from a year earlier to $189,204. Average mortgage size gained 13.8% in April 2016 from a year earlier.
Other Market Trends
The percentage of new home closings belonging to single-family homes has risen from last year while the portion of new home closings belonging to attached units has dropped. Single-family home closings jumped from 84.0% of new closings in May 2015 to 91.4% of closings in May 2016. At the same time, the share of new home closings belonging to attached units sank to 8.6% of closings from 16.0% of closings.
The average unit size of newly sold homes rose 13.5% year-over-year to 2,583 square feet in May 2016. The average size of newly sold homes moved from 2,153 square feet in April 2015 to 1,460 square feet in April 2016.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in May, but did not look to be a burden on the market. Together, foreclosures plus REO closings represented 18.7% of existing home closings, down from 20.7% a year earlier. The percentage of existing home closings involving foreclosures fell to 8.9% in May from 11.8% a year earlier and REO closings moved from 9.0% of existing home closings in May 2015 to 9.8% in May 2016.