Closings of new homes in the Clarksville, TN-KY market slid year-over-year in May, moving downward after a lift in April 2016. New home closings saw a fall of 12.5% from the year earlier to 56. This was after the housing market saw a 24.5% jump year-over-year in April.
A total of 706 new homes were sold during the 12 months that ended in May, down from 714 for the year that ended in April.
As a percentage of overall housing closings, new home closings represented 9.0%. This is down from the a year earlier when new home closings accounted for 10.7% of total closings. Following a year-over-year increase in April, closings of new and existing homes also increased year-over-year in May.
Pricing and Mortgage Trends
The average per-unit price of newly sold homes climbed year-over-year to $227,605 in May, up 7.7% from last year. This boost compares to a 3.1% fall in April from a year earlier.
The average mortgage size on new homes moved north year-over-year along with new home prices. Average mortgage size climbed 7.3% to $227,293 in May from a year earlier. In April 2016, average mortgage size on newly sold homes saw a 1.7% decline from a year earlier.
Other Market Trends
Closings of attached units, as a percentage of new home closings, have gained from last year while closings of single-family homes have slumped. The share of new home closings belonging to attached units jumped from no part of closings in May 2015 to 1.8% of closings in May 2016. At the same time, the share belonging to single-family homes slid to 98.2% of closings from all of closings.
The average unit size of newly sold homes rose 15.3% year-over-year to 2,198 square feet in May 2016. In April, the average size of new homes sold went from 1,961 square feet a year earlier to 1,568 square feet. The rise was sharper than the hike in average price of newly sold homes, making the movement simliar to April 2016 when the average size gained 20.0% to 1,568 square feet from a year earlier.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in May, but did not look to be a burden on the market. Together, foreclosures plus REO closings made up 21.1% of existing home closings, down from 23.2% a year earlier. The percentage of existing home closings involving foreclosures dropped to 11.3% in May from 14.0% a year earlier and REO closings moved from 9.2% of existing home closings in May 2015 to 9.9% in May 2016.
Please refer to the ABOUT THIS MSA tab to learn more about geographic coverage and data availability in the Clarksville, TN-KY area.