In the Virginia Beach, VA market in December, closings of new homes declined year-over-year, but the fall in percentage terms was an improvement from November 2015, suggesting that the market may be evening out. New home closings saw a 33.9% drop from a year earlier to 117. This was after the housing market saw a 36.2% drop year-over-year in November.
A total of 1,947 new homes were sold during the 12 months that ended in December, down from 2,007 for the year that ended in November.
New home closings made up 5.4% of overall housing closings. This is a fall 7.6% of closings a year earlier. Closings of new and existing homes slid year-over-year in December after also falling in November year-over-year.
Pricing and Mortgage Trends
The average price of newly sold homes declined 6.9% year-over-year in December to $303,866 per unit. This fall compares to a 7.3% surge in November year-over-year.
The average mortgage size on newly sold homes moved south year-over-year in contrast to new home prices. In December 2015, the average mortgage size on newly sold homes saw a 7.4% drop from a year earlier. Average mortgage size grew 6.1% in November 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 gained from 67.8% of new closings in December 2014 to 83.8% of closings in December 2015. At the same time, the share of new home closings belonging to attached units declined to 16.2% of closings from 32.2% of closings.
There was a 9.4% drop year-over-year in the average unit size of newly sold homes to 2,092 square feet in December 2015. The average size of newly sold homes moved from 2,341 square feet in November 2014 to 2,299 square feet in November 2015.
Foreclosures and real estate owned (REO) closings fell in December from a year earlier, but stayed a drag on the market. Out of all existing home closings, foreclosures combined with REO closings accounted for 32.5% of closings, below 35.7% a year earlier. The percentage of existing home closings involving foreclosures sank to 15.1% in December from 18.6% a year earlier and REO closings moved from 17.1% of existing home closings in December 2014 to 17.4% in December 2015.