In the Chattanooga, TN market in June, closings of new homes dropped year-over-year, and the decline was by a larger percentage than the May 2016. New home closings moved from 45 a year earlier to 17 after the figure moved from 36 in May 2015 to 14 in May 2016.
A total of 354 new homes were sold during the 12 months that ended in June, down from 382 for the year that ended in May.
Out of all housing closings, new home closings made up 1.7%. This is down from the a year earlier when new home closings accounted for 4.0% of total closings. After rising year-over-year in May, closings of new and existing homes declined year-over-year in June.
Pricing and Mortgage Trends
In June, the average price for new home closings was $305,724, a 2.0% fall from last year. This fall compares to a 8.1% gain in May year-over-year.
Average mortgage size on new homes declined year-over-year in contrast to new home prices. It sank 2.0% in June from a year earlier to $262,042. Average mortgage size on new homes went from $249,423 in May 2015 to $261,962 in May 2016.
Other Market Trends
Closings of attached units, as a percentage of new home closings, have grown from last year while closings of single-family homes have dipped. Attached unit closings rose from 4.4% of all closings in June 2015 to 5.9% of closings in June 2016. At the same time, the share belonging to single-family homes dropped to 94.1% of closings from 95.6% of closings.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in June, but did not appear to be dragging the market. Foreclosures and REO closings, taken together, represented 14.4% of existing closings, lower than 23.5% a year earlier. The percentage of existing home closings involving foreclosures fell to 6.6% in June from 10.7% a year earlier while REO closings as a percentage of existing home closings sank to 7.8% from 12.8% a year earlier.