The Burlington, NC market saw a rise in new home closings in August year-over-year, an upward turn from a fall in July 2015. Closings gained 70.8% from a year earlier to 41. This came on the heels of a 5.9% drop year-over-year in July.
A total of 359 new homes were sold during the 12 months that ended in August, up from 342 for the year that ended in July.
As a percentage of overall housing closings, new home closings made up 20.9%. This is an increase on a percentage basis, as new home closings were 13.6% of total closings a year ago. Following a year-over-year increase in July, closings of new and existing homes also climbed year-over-year in August.
Pricing and Mortgage Trends
In August, the average value of new homes saw a 17.4% surge year-over-year as it grew to $219,439 per unit. This gain is smaller than the 25.1% lift in July year-over-year.
The average mortgage size on newly sold homes saw a hike year-over-year along with new home prices. In August 2015, there was a 9.1% rise in the average mortgage size, reaching $186,518. Average mortgage size jumped 28.1% in July 2015 from a year earlier.
Other Market Trends
The share of new home closings made up by attached units has risen while the share belonging to single-family homes has fallen. Attached unit closings grew from 20.8% of all closings in August 2014 to 22.0% of closings in August 2015. Conversely, the share belonging to single-family homes slid to 78.0% of closings from 79.2% of closings.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in August, but did not look to be a burden on the market. Together, foreclosures plus REO closings made up 21.9% of existing home closings, down from 32.2% a year earlier. The percentage of existing home closings involving foreclosures declined to 4.5% in August from 12.5% a year earlier while REO closings as a percentage of existing home closings sank to 17.4% from 19.7% a year earlier.