The Nashville, TN market saw a rise in new home closings in December year-over-year, and the percentage boost was an improvement from November 2015, suggesting the market may be gaining momentum. New home closings saw a rise of 14.5% from the year earlier to 654. This was after the housing market saw a 10.2% climb year-over-year in November.
A total of 6,390 new homes were sold during the 12 months that ended in December, up from 6,307 for the year that ended in November.
As a percentage of overall housing closings, new home closings represented 17.2%. This is an increase on a percentage basis, as new home closings were 15.8% of total closings a year ago. After remaining steady in November from a year earlier, closings of new and existing homes increased in December.
Pricing and Mortgage Trends
Average price of newly sold homes had a 4.5% hike year-over-year to $355,185 per unit in December. This rise is an improvement over the 2.2% bump in November year-over-year.
Along with new home prices, there was an increase year-over-year in the average mortgage size on newly sold homes. The average mortgage size saw a 7.8% lift year-over-year to $292,173 in December. In November 2015, average mortgage size on newly sold homes saw a 7.2% surge year-over-year 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 climbed from 76.7% in December 2014 to 77.8% of closings in December 2015. At the same time, the share of new home closings belonging to attached units slid to 22.2% of closings from 23.3% of closings.
For all new homes sold, the average unit size grew 4.5% year-over-year to 2,732 square feet in December 2015. In November, the average size of new homes sold went from 2,633 square feet a year earlier to 2,504 square feet.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in December, but did not appear to be dragging the market. Together, foreclosures plus REO closings represented 13.4% of existing home closings, down from 17.0% a year earlier. The percentage of existing home closings involving foreclosures sank to 5.7% in December from 8.1% a year earlier while REO closings as a percentage of existing home closings fell to 7.7% from 8.9% a year earlier.