In the Jacksonville, NC market in July, closings of new homes dropped year-over-year, and the percentage drop, which was steeper than June 2015, gave signs of weakening market conditions. New home closings saw a decline of 50.0% from the year earlier to 45. In comparison, new home closings in the same month last year saw a 32.5% drop year-over-year in June.
A total of 707 new homes were sold during the 12 months that ended in July, down from 752 for the year that ended in June.
New home closings accounted for 10.6% of overall housing closings. This is a fall 21.3% of closings a year earlier. After being steady in June from a year earlier, closings of new and existing homes remained level in July.
Pricing and Mortgage Trends
The average price of newly sold homes jumped year-over-year 13.6% in July to $220,924 per unit. This gain follows a move from $191,016 per unit to $191,242 from June 2014 to June 2015.
Along with new home prices, there was an increase year-over-year in the average mortgage size on newly sold homes. In July 2015, there was a 12.9% gain in the average mortgage size, reaching $214,229. It went from $192,651 to $193,291 from June 2014 to June 2015.
Other Market Trends
There was no change in the composition of the new home market with regard to the types of properties sold in July 2015. Single-family home closings have made up all of new home closings while attached unit closings have accounted for no part of closings.
There was a 15.6% hike year-over-year in the average unit size of newly sold homes to 2,274 square feet in July 2015. The average size of newly sold homes moved from 1,992 square feet in June 2014 to 2,011 square feet in June 2015.
Foreclosures and real estate owned (REO) closings declined in July from a year earlier, but remained a drag on the market. Foreclosures and REO closings, taken together, represented 50.1% of existing closings, lower than 56.0% a year earlier. The percentage of existing home closings involving foreclosures went from 24.7% in July 2014 to 25.6% in July 2015 and REO closings as a percentage of existing home closings declined to 24.5% from 31.3% a year earlier.