New home closings in the Richmond, VA market sank year-over-year in June, sliding down after a hike in May 2015. New home closings saw a decline of 13.7% from the year earlier to 157. This came after a 4.5% jump year-over-year in May.
A total of 1,773 new homes were sold during the 12 months that ended in June, down from 1,798 for the year that ended in May.
New home closings represented 7.2% of overall housing closings. This is down from the a year earlier when new home closings represented 9.0% of total closings. Closings of new and existing homes rose year-over-year in June after also rising in May year-over-year.
Pricing and Mortgage Trends
In June, the average price for new home closings was $356,741, a 5.3% decline from last year. This decline compares to a 4.1% lift in May year-over-year.
Average mortgage size on new homes saw a fall year-over-year in contrast to prices of new homes. It fell 2.6% in June from a year earlier, reaching $304,491. Average mortgage size increased 6.2% in May 2015 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. Single-family home closings grew from 73.6% of new closings in June 2014 to 93.6% of closings in June 2015. At the same time, the share of new home closings belonging to attached units slid to 6.4% of closings from 26.4% of closings.
There was a 7.1% drop year-over-year in the average unit size of newly sold homes to 2,670 square feet in June 2015. The average size of newly sold homes moved from 2,840 square feet in May 2014 to 2,993 square feet in May 2015.
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 17.2% of existing closings, lower than 22.9% a year earlier. The percentage of existing home closings involving foreclosures sank to 7.8% in June from 11.6% a year earlier while REO closings as a percentage of existing home closings dropped to 9.5% from 11.3% a year earlier.