Closings of new homes sank year-over-year in March in the Fayetteville, NC market, but the decline was less than the year-over-year decline in February. New home closings moved from 69 a year earlier to 25 after the figure moved from 51 in February 2015 to 7 in February 2016.
A total of 401 new homes were sold during the 12 months that ended in March, down from 445 for the year that ended in February.
Out of all housing closings, new home closings represented 5.1%. This is down from the 13.7% of closings a year earlier. After rising year-over-year in February, closings of new and existing homes declined year-over-year in March.
Pricing and Mortgage Trends
In March, the average per-unit price of new homes slid by 35.1% year-over-year to $143,100. This drop compares to a 15.8% bump in February year-over-year.
In contrast to new home prices, there was an increase year-over-year in the average mortgage size on newly sold homes. Average mortgage size grew 9.4% to $239,620 in March from a year earlier. Average mortgage size on new homes went from $215,313 in February 2015 to $254,685 in February 2016.
Other Market Trends
Closings of attached units, as a percentage of new home closings, have climbed from last year while closings of single-family homes have dipped. The share of new home closings belonging to attached units gained from 2.9% of closings in March 2015 to 56.0% of closings in March 2016. Meanwhile, single-family home closings as a percentage of all new home closings sank to 44.0% of closings from 97.1% of closings.
The average unit size of newly sold homes dropped 45.0% year-over-year to 1,337 square feet in March 2016. The average size of newly sold homes moved from 2,562 square feet in February 2015 to 2,917 square feet in February 2016.
Foreclosures and real estate owned (REO) closings decreased in March from a year earlier, but stayed a drag on the market. Together, foreclosures plus REO closings made up 44.5% of existing home closings, down from 48.3% a year earlier. The percentage of existing home closings involving foreclosures declined to 21.7% in March from 25.7% a year earlier and REO closings moved from 22.5% of existing home closings in March 2015 to 22.8% in March 2016.