In the Jacksonville, NC market in July, new home closings dropped year-over-year, and the percentage fall worsened from June 2016, indicating the market may be weakening. There was a 65.8% decline in new home closings from a year earlier. In comparison, new home closings in the same month last year saw a 55.6% decline year-over-year in June.
A total of 511 new homes were sold during the 12 months that ended in July, down from 559 for the year that ended in June.
As a percentage of overall housing closings, new home closings accounted for 7.7%. This is down from the 16.9% of closings a year earlier. After rising year-over-year in June, closings of new and existing homes sank year-over-year in July.
Pricing and Mortgage Trends
In July, the average price of newly sold homes sank 14.3% year-over-year to $177,864 per unit. This drop compares to a 15.9% bump in June year-over-year.
The average mortgage size on newly sold homes moved south year-over-year in contrast to new home prices. Average mortgage size sank 18.4% to $169,181 in July from a year earlier. In June 2016, average mortgage size on newly sold homes saw a 9.2% lift year-over-year from a year earlier.
Other Market Trends
There was no change in the composition of the new home market with regard to the types of properties sold in July 2016. Single-family home closings have made up all of new home closings while attached unit closings have represented no part of closings.
For all new homes sold, the average unit size declined 10.7% year-over-year to 1,883 square feet in July 2016. The average size of newly sold homes moved from 1,904 square feet in June 2015 to 1,950 square feet in June 2016.
Foreclosures and real estate owned (REO) closings fell in July from a year earlier, but remained a drag on the market. Out of all existing home closings, foreclosures combined with REO closings made up 39.8% of closings, below 49.3% a year earlier. The percentage of existing home closings involving foreclosures fell to 21.7% in July from 25.9% a year earlier while REO closings as a percentage of existing home closings sank to 18.1% from 23.4% a year earlier.