There was a rise in new home closings in the Nashville, TN market in January year-over-year, but the percentage gain was not as steep as December 2015, giving signs of market evening out. From a year ago to January 2016, new home closings moved from 385 to 387. This came on the heels of a 14.7% jump in December from the year earlier.
A total of 6,383 new homes were sold during the 12 months that ended in January, up from 6,381 for the year that ended in December.
New home closings made up 14.2% of overall housing closings. New home closings were 14.6% of overall closings last year. Closings of new and existing homes jumped year-over-year in January after also rising in December year-over-year.
Pricing and Mortgage Trends
In January, the average price of newly sold homes slid 4.7% year-over-year to $361,057 per unit. This decline compares to a 4.4% surge in December year-over-year.
For newly sold homes, the average mortgage size climbed year-over-year in contrast to new home prices. The average mortgage size rose to $294,514 in January, marking a 3.4% hike compared with a year earlier. In December 2015, average mortgage size gained 7.8% 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 climbed from 70.9% of new closings in January 2015 to 78.8% of closings in January 2016. Meanwhile, attached units as a percentage of all new home closings declined to 21.2% of closings from 29.1% of closings.
There was a 15.1% boost year-over-year in the average unit size of newly sold homes to 2,723 square feet in January 2016. The average size of newly sold homes moved from 2,615 square feet in December 2014 to 2,732 square feet in December 2015.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in January, but did not look to be a burden on the market. Out of all existing home closings, foreclosures combined with REO closings represented 16.0% of closings, below 21.2% a year earlier. The percentage of existing home closings involving foreclosures declined to 7.6% in January from 10.0% a year earlier while REO closings as a percentage of existing home closings slid to 8.5% from 11.2% a year earlier.