In January, there was a decline year-over-year in new home closings in the Kingsport, TN market, and the decline was by a larger percentage than the December 2015. New home closings moved from 6 a year earlier to 1 after the figure moved from 9 in December 2014 to 4 in December 2015.
A total of 74 new homes were sold during the 12 months that ended in January, down from 79 for the year that ended in December.
New home closings were 1 out of the 286 total closings, down on a percentage basis from 6 of 218 a year earlier. Following a year-over-year increase in December, closings of new and existing homes also rose year-over-year in January.
Pricing and Mortgage Trends
The average new home price was $126,500, down from $280,967 a year earlier. This followed a 21.9% decline in December from a year earlier.
Average mortgage size on newly sold homes saw a decline year-over-year from $257,905 to $83,385. Average mortgage size on new homes went from $223,117 in December 2014 to $165,885 in December 2015.
Other Market Trends
There was no change in the composition of the new home market with regard to the types of properties sold in January 2016.
The average unit size of newly sold homes fell from 2,202 square feet a year earlier to 1,196 square feet.
Foreclosures and real estate owned (REO) closings decreased in January from a year earlier, but stayed a drag on the market. Foreclosures and REO closings, taken together, made up 25.6% of existing closings, lower than 28.8% a year earlier. The percentage of existing home closings involving foreclosures went from 14.2% in January 2015 to 13.7% in January 2016 and REO closings as a percentage of existing home closings dropped to 11.9% from 14.6% a year earlier.