In April, closings of new homes increased year-over-year in the Nashville, TN market, but with a less pronounced percentage gain than March 2016, there are signs of market stabilization. Closings increased 16.2% from a year earlier to 568. This came on the heels of a 29.1% jump 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.
As a percentage of overall housing closings, new home closings made up 13.4% of overall housing closings. A year ago, new home closings accounted for 12.5%. Following a year-over-year increase in March, closings of new and existing homes also jumped year-over-year in April.
Pricing and Mortgage Trends
The average per-unit price of newly sold homes rose year-over-year to $361,630 in April, up 2.3% from last year. This hike is smaller than the 10.6% bump in March year-over-year.
There was a boost year-over-year in the average mortgage size on new homes along with new home prices. In April 2016, average mortgage size rose 3.6% from a year earlier to $304,045. In March 2016, average mortgage size on newly sold homes saw a 8.6% 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 grew 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 fell to 16.9% of closings from 20.4% of closings.
There was a 5.8% decline 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 fall from a year earlier in April, but did not appear to be dragging the market. Combined, foreclosures plus REO closings accounted for 9.7% of existing home closings, below 14.7% a year earlier. The percentage of existing home closings involving foreclosures slid to 4.1% in April from 7.7% a year earlier while REO closings as a percentage of existing home closings declined to 5.6% from 7.0% a year earlier.