New home closings declined year-over-year in April in the Chattanooga, TN market, and the percentage fall, which was steeper than March 2016, gave hints of weakening market conditions. New home closings saw a fall of 63.6% from the year earlier to 16. In comparison, new home closings in the same month last year saw a 45.0% fall year-over-year in March.
A total of 400 new homes were sold during the 12 months that ended in April, down from 428 for the year that ended in March.
Out of all housing closings, new home closings represented 1.7%. This is down from the 4.7% of closings a year earlier. Following a year-over-year increase in March, closings of new and existing homes declined year-over-year in April.
Pricing and Mortgage Trends
Average value of new homes sold in April was $207,840 per unit, down 35.2% from a year earlier. This drop compares to a 9.3% surge in March year-over-year.
For newly sold homes, the average mortgage size declined year-over-year in contrast to average price of new homes. The average mortgage size dropped to $197,965 in April, marking a 23.1% fall compared with last year. In March 2016, average mortgage size increased 18.2% from a year earlier.
Other Market Trends
As a percentage of new home closings, attached unit closings have climbed from last year while single-family home closings have dropped. Attached unit closings grew from no part of all closings in April 2015 to 12.5% of closings in April 2016. Meanwhile, single-family home closings as a percentage of all new home closings fell to 87.5% of closings from all of closings.
There was a 22.9% drop year-over-year in the average unit size of newly sold homes to 1,598 square feet in April 2016. In March, the average size of new homes sold went from 2,020 square feet a year earlier to 1,646 square feet.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in April, but did not appear to be dragging the market. Out of all existing home closings, foreclosures combined with REO closings made up 22.1% of closings, below 30.2% a year earlier. The percentage of existing home closings involving foreclosures dropped to 10.1% in April from 11.8% a year earlier while REO closings as a percentage of existing home closings sank to 12.0% from 18.4% a year earlier.