In the Charlottesville, VA market in February, closings of new homes dropped year-over-year, but the decline was less than the year-over-year decline in January. New home closings moved from 17 a year earlier to 9 after the figure moved from 23 in January 2015 to 8 in January 2016.

A total of 226 new homes were sold during the 12 months that ended in February, down from 234 for the year that ended in January.

On a percentage basis, new home closings as a part of total closings decreased to 4.3% from 7.9% a year earlier. For new and existing homes, closings dropped in February after also declining in January year-over-year.

Pricing and Mortgage Trends

The average per-unit price of new homes was $291,226, compared with $381,554 last year. This came after a 17.3% decline in January from a year earlier.

Average mortgage size on new homes fell from $300,753 to $225,739. Average mortgage size on new homes went from $351,418 in January 2015 to $308,714 in January 2016.

Other Market Trends

There was no change in the composition of the new home market with regard to the types of properties sold in February 2016.

Foreclosures and real estate owned (REO) closings declined in February from a year earlier, but remained a drag on the market. Out of all existing home closings, foreclosures combined with REO closings represented 25.9% of closings, below 26.3% a year earlier. The percentage of existing home closings involving foreclosures fell to 13.9% in February from 16.2% a year earlier while REO closings as a percentage of existing home closings jumped to 11.9% from 10.1%.

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