In June, the Knoxville, TN market saw a drop year-over-year in new home closings, but the percentage decline, which was less than that of May 2016, gave hints that the market may be evening out. New home closings saw a 71.6% decline from a year earlier to 21. In comparison, new home closings in the same month last year saw a 73.4% decline 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.
Out of all housing closings, new home closings made up 1.7%. This is down from the 5.8% of closings a year earlier. Closings of new and existing homes sank year-over-year in June after also falling in May year-over-year.
Pricing and Mortgage Trends
In June, there was no change year-over-year in the average price of new homes as it remained at $251,483 per unit. This comes after a 25.7% boost in May year-over-year.
Average mortgage size on new homes went from $206,368 in June 2015 to $205,420 in June 2016. In May 2016, average mortgage size on newly sold homes saw a 14.6% lift year-over-year 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. Attached unit closings increased from 6.8% of all closings in June 2015 to 28.6% of closings in June 2016. Meanwhile, single-family home closings as a percentage of all new home closings declined 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 fall from a year earlier in June, but did not appear to be dragging the market. Combined, foreclosures plus REO closings made up 15.2% of existing home closings, below 19.9% a year earlier. The percentage of existing home closings involving foreclosures fell 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.