Closings of new homes in the Nashville, TN market grew year-over-year in April, but with an increase less steep than that of March 2016, the market seemed to be showing signs of stabilizing. New home closings saw a jump of 16.2% from the year earlier to 568. This was after the housing market saw a 29.1% rise year-over-year in March.
A total of 6,692 new homes were sold during the 12 months that ended in April, up from 6,613 for the year that ended in March.
New home closings made up 13.4% of overall housing closings. A year earlier, new home closings made up 12.5% of total closings. For new and existing homes, closings gained year-over-year in April after also increasing in March year-over-year.
Pricing and Mortgage Trends
In April, the average value of new homes saw a 2.3% gain year-over-year as it grew to $361,630 per unit. This rise is smaller than the 10.6% boost in March year-over-year.
Along with new home prices, there was an increase year-over-year in the average mortgage size on newly sold homes. Average mortgage size jumped 3.6% to $304,045 in April from a year earlier. In March 2016, average mortgage size increased 8.6% from a year earlier.
Other Market Trends
As a share of new home closings, single-family home closings have climbed from last year while the share belonging to attached units has fallen. The share of new home closings belonging to single-family homes increased from 79.6% in April 2015 to 83.1% of closings in April 2016. At the same time, the share of new home closings belonging to attached units slid to 16.9% of closings from 20.4% of closings.
There was a 5.8% fall year-over-year in the average unit size of newly sold homes to 2,538 square feet in April 2016. In March, the average size of new homes sold went from 2,560 square feet a year earlier to 2,589 square feet.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in April, but did not look to be a burden on the market. Together, foreclosures plus REO closings made up 9.7% of existing home closings, down from 14.7% a year earlier. The percentage of existing home closings involving foreclosures dropped to 4.1% in April from 7.7% a year earlier while REO closings as a percentage of existing home closings slid to 5.6% from 7.0% a year earlier.