In the Knoxville, TN market in June, new home closings declined year-over-year, but with a percentage drop less steep than May 2016, there are signs the market may be stabilizing. Closings dropped 71.6% from a year earlier to 21. In comparison, new home closings in the same month last year saw a 73.4% fall year-over-year in May.
A total of 477 new homes were sold during the 12 months that ended in June, down from 530 for the year that ended in May.
New home closings represented 1.7% of overall housing closings. This is down from the a year earlier when new home closings represented 5.8% of total closings. Closings of new and existing homes dropped year-over-year in June after also falling in May year-over-year.
Pricing and Mortgage Trends
The average per-unit price of newly sold homes stayed the same year-over-year in June at $251,483. This comes after a 25.7% bump in May year-over-year.
For newly sold homes, average mortgage size moved from $206,368 in June 2015 to $205,420 in June 2016. In May 2016, average mortgage size rose 14.6% from a year earlier.
Other Market Trends
The share of new home closings made up by attached units has risen while the share belonging to single-family homes has fallen. The share of new home closings belonging to attached units increased from 6.8% of closings in June 2015 to 28.6% of closings in June 2016. Conversely, the share belonging to single-family homes slid to 71.4% of closings from 93.2% of closings.
There was a 21.4% decline year-over-year in the average unit size of newly sold homes to 1,729 square feet in June 2016. The average size of newly sold homes moved from 2,358 square feet in May 2015 to 2,033 square feet in May 2016.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in June, but did not look to be a burden on the market. Together, foreclosures plus REO closings accounted for 15.2% of existing home closings, down from 19.9% a year earlier. The percentage of existing home closings involving foreclosures slid to 6.8% in June from 10.6% a year earlier and REO closings moved from 9.3% of existing home closings in June 2015 to 8.4% in June 2016.