New home closings in the Nashville, TN market grew year-over-year in August, and the percentage rise was an improvement from July 2015, suggesting the market may be gaining momentum. Closings climbed 34.0% from a year earlier to 567. This came on the heels of a 18.4% rise year-over-year in July.
A total of 5,514 new homes were sold during the 12 months that ended in August, up from 5,370 for the year that ended in July.
New home closings accounted for 12.9% of overall housing closings. This marks a rise from 10.7% of total closings a year earlier. For new and existing homes, closings grew year-over-year in August after also increasing in July year-over-year.
Pricing and Mortgage Trends
In August, the average price of newly sold homes gained 4.0% year-over-year to $342,000 per unit. This surge is smaller than the 5.7% rise in July year-over-year.
The average mortgage size on new homes moved north year-over-year along with new home prices. In August 2015, the average mortgage size was $282,741, a 3.4% bump from a year earlier. In July 2015, average mortgage size grew 6.4% from a year earlier.
Other Market Trends
Single-family homes accounted for a greater percentage of new home closings than last year. Single-family home closings jumped from 84.9% of new closings in August 2014 to 85.9% of closings in August 2015. At the same time, the share of new home closings belonging to attached units sank to 14.1% of closings from 15.1% of closings.
For all new homes sold, the average unit size dropped 13.6% year-over-year to 2,334 square feet in August 2015. For newly sold homes, an average size decline contrasting with an average price boost was also seen in July 2015 when the average size of newly sold homes sank 10.5% to 2,330 square feet. The average size of newly sold homes moved from 2,602 square feet in July 2014 to 2,330 square feet in July 2015.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in August, but did not look to be a burden on the market. Out of all existing home closings, foreclosures combined with REO closings accounted for 12.0% of closings, below 14.7% a year earlier. The percentage of existing home closings involving foreclosures dropped to 5.9% in August from 7.0% a year earlier while REO closings as a percentage of existing home closings slid to 6.2% from 7.6% a year earlier.