There was a rise in new home closings in the Durham, NC market in July year-over-year, bouncing back from a drop in June 2016. New home closings saw a rise of 25.6% from the year earlier to 167. This followed a 8.2% drop year-over-year in June.
A total of 1,879 new homes were sold during the 12 months that ended in July, up from 1,845 for the year that ended in June.
As a percentage of overall housing closings, new home closings accounted for 16.6%. This is better than the 13.2% of closings a year earlier. After being steady in June from a year earlier, closings of new and existing homes remained level in July.
Pricing and Mortgage Trends
For newly sold homes, the average price grew 2.3% year-over-year in July to $365,838 per unit. This hike is smaller than the 10.4% gain in June year-over-year.
There was a hike year-over-year in the average mortgage size on new homes along with new home prices. In July 2016, there was a 3.0% gain in the average mortgage size, reaching $286,330. Average mortgage size climbed 18.3% in June 2016 from a year earlier.
Other Market Trends
Single-family homes accounted for a greater percentage of new home closings than last year. Single-family home closings gained from 72.9% of new closings in July 2015 to 82.6% of closings in July 2016. Meanwhile, attached units as a percentage of all new home closings declined to 17.4% of closings from 27.1% of closings.
The average unit size of newly sold homes went from 2,839 square feet in July 2015 to 2,865 square feet in July 2016. The average size of newly sold homes moved from 2,709 square feet in June 2015 to 2,800 square feet in June 2016. In June 2016, the average size of newly sold homes increased 3.4% from the year earlier.
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. Combined, foreclosures plus REO closings represented 9.4% of existing home closings, below 12.3% a year earlier. The percentage of existing home closings involving foreclosures fell to 3.8% in July from 6.4% a year earlier and REO closings moved from 5.9% of existing home closings in July 2015 to 5.6% in July 2016.