New home closings in the Richmond, VA market fell year-over-year in July, and the percentage fall was steeper than June 2015, suggesting the market may be worsening. New home closings saw a 16.8% decline from a year earlier to 119. This came on the heels of a 2.7% drop year-over-year in June.
A total of 1,804 new homes were sold during the 12 months that ended in July, down from 1,828 for the year that ended in June.
New home closings represented 7.5% of overall housing closings. A year ago, 7.3% of total closings were new home closings. After rising year-over-year in June, closings of new and existing homes fell year-over-year in July.
Pricing and Mortgage Trends
In July, the average price of newly sold homes climbed 3.1% year-over-year to $369,410 per unit. This hike compares to a 6.7% decline in June from a year earlier.
There was a gain year-over-year in the average mortgage size on new homes along with new home prices. In July 2015, the average mortgage size on newly sold homes saw a 2.9% rise from a year earlier. Average mortgage size sank 2.2% in June 2015 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. The share of new home closings belonging to single-family homes gained from 75.5% in July 2014 to 93.3% of closings in July 2015. At the same time, the share of new home closings belonging to attached units dropped to 6.7% of closings from 24.5% of closings.
The average unit size of newly sold homes dropped 9.1% year-over-year to 2,480 square feet in July 2015. In June, the average size of new homes sold went from 2,874 square feet a year earlier to 2,661 square feet.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in July, but did not appear to be dragging the market. Together, foreclosures plus REO closings accounted for 21.6% of existing home closings, down from 28.2% a year earlier. The percentage of existing home closings involving foreclosures declined to 10.5% in July from 15.7% a year earlier while REO closings as a percentage of existing home closings slid to 11.1% from 12.4% a year earlier.