In the Nashville, TN market in July, closings of new homes climbed year-over-year, recovering from a fall in June 2016. This year's new home closings gained from last year by 1.8%, reaching 607. The came on the heels of a move from 616 in June 2015 to 596 in June 2016.
A total of 6,783 new homes were sold during the 12 months that ended in July, up from 6,772 for the year that ended in June.
New home closings represented 13.9% of overall housing closings. This is a lift from 12.2% of closings a year earlier. For new and existing homes, closings dropped in July after also declining in June year-over-year.
Pricing and Mortgage Trends
The average price of new homes was $375,779 per unit in July, up 9.4%from a year earlier. This bump is higher than the 8.7% hike in June year-over-year.
For newly sold homes, the average mortgage size saw a boost year-over-year along with new home prices. In July 2016, the average mortgage size was $310,558, up 9.8% from a year earlier. In June 2016, average mortgage size jumped 7.3% from a year earlier.
Other Market Trends
Single-family homes accounted for a greater percentage of new home closings than last year. The share of new home closings belonging to single-family homes increased from 79.9% in July 2015 to 83.2% of closings in July 2016. Meanwhile, attached units as a percentage of all new home closings slid to 16.8% of closings from 20.1% of closings.
For all new homes sold, the average unit size fell 13.2% year-over-year to 2,298 square feet in July 2016. The average size of newly sold homes moved from 2,580 square feet in June 2015 to 2,732 square feet in June 2016.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in July, but did not look to be a burden on the market. Foreclosures and REO closings, taken together, accounted for 6.9% of existing closings, lower than 12.1% a year earlier. The percentage of existing home closings involving foreclosures sank to 3.0% in July from 6.2% a year earlier while REO closings as a percentage of existing home closings slid to 4.0% from 6.0% a year earlier.