There was a rise in closings of new homes in the Nashville, TN market in March year-over-year, and the market seemed to be signaling bolstering with a percentage boost stronger than February 2016. New home closings saw a rise of 29.1% from the year earlier to 684. In comparison, new home closings in the same month last year saw a 18.2% jump year-over-year in February.
A total of 6,612 new homes were sold during the 12 months that ended in March, up from 6,458 for the year that ended in February.
New home closings accounted for 17.5% of overall housing closings. This is a boost from 13.7% of closings a year earlier. Closings of new and existing homes stayed level after increasing in February year-over-year.
Pricing and Mortgage Trends
In March, the average price of newly sold homes increased 10.6% year-over-year to $362,317 per unit. This hike compares to a 1.9% decline in February from a year earlier.
For newly sold homes, the average mortgage size saw a rise year-over-year along with new home prices. It rose to $299,143 in March, a 8.6% gain. Average mortgage size climbed 1.6% in February 2016 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 77.4% in March 2015 to 81.3% of closings in March 2016. At the same time, the share of new home closings belonging to attached units fell to 18.7% of closings from 22.6% of closings.
The average unit size of newly sold homes jumped 1.1% year-over-year to 2,589 square feet in March 2016. In February, the average size of new homes sold went from 2,531 square feet a year earlier to 2,632 square feet.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in March, but did not look to be a burden on the market. Out of all existing home closings, foreclosures combined with REO closings represented 11.1% of closings, below 15.7% a year earlier. The percentage of existing home closings involving foreclosures dropped to 5.1% in March from 6.9% a year earlier while REO closings as a percentage of existing home closings sank to 6.0% from 8.9% a year earlier.