In the Raleigh, NC market in September, new home closings sank year-over-year, but the percentage drop was not as steep as August 2015, suggesting market improvement. There was a 4.3% drop in new home closings from a year earlier. This came on the heels of a 15.0% drop year-over-year in August.
A total of 6,190 new homes were sold during the 12 months that ended in September, down from 6,211 for the year that ended in August.
Of 1,949 total closings, 464 were of new homes. This is better than the 22.3% of closings a year earlier. For new and existing homes, closings sank in September after also declining in August year-over-year.
Pricing and Mortgage Trends
Average price of newly sold homes had a 8.4% lift year-over-year to $330,933 per unit in September. This bump is higher than the 3.2% surge in August year-over-year.
There was a lift year-over-year in the average mortgage size on new homes along with new home prices. It grew 9.6% in September from a year earlier to $281,629. In August 2015, average mortgage size on newly sold homes saw a 4.0% boost year-over-year 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 dipped. Attached unit closings climbed from 20.6% of all closings in September 2014 to 30.4% of closings in September 2015. At the same time, the share belonging to single-family homes dropped to 69.6% of closings from 79.4% of closings.
The average unit size of newly sold homes climbed 5.7% year-over-year to 2,764 square feet in September 2015. An increase was also seen in August 2015 when the average size of new homes sold increased 14.2% to 3,060 square feet. In August, the average size of new homes sold went from 2,680 square feet a year earlier to 3,060 square feet.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in September, but did not look to be a burden on the market. Together, foreclosures plus REO closings made up 9.4% of existing home closings, down from 16.6% a year earlier. The percentage of existing home closings involving foreclosures fell to 4.9% in September from 8.5% a year earlier while REO closings as a percentage of existing home closings slid to 4.4% from 8.1% a year earlier.