There was an increase in closings of new homes in the Burlington, NC market in May year-over-year, and with a more robust gain than April 2016, there are signals the market may be strengthening. New home closings saw a 31.0% climb from a year earlier to 38. This was after the housing market saw a 6.9% hike year-over-year in April.
A total of 417 new homes were sold during the 12 months that ended in May, up from 408 for the year that ended in April.
As a percentage of overall housing closings, new home closings accounted for 17.6% of closings, relatively stable from a year earlier. Following a year-over-year increase in April, closings of new and existing homes also jumped year-over-year in May.
Pricing and Mortgage Trends
The average value of newly sold homes moved to $200,079 in May 2016 from $198,534 in May 2015. This followed a 11.6% decline in April from a year earlier.
For newly sold homes, the average mortgage size saw a fall year-over-year in contrast to new home prices. It sank to $175,251 in May, a 4.8% decline. Average mortgage size declined 9.1% in April 2016 from a year earlier.
Other Market Trends
The share of new home closings made up by attached units has risen while the share belonging to single-family homes has fallen. Attached unit closings grew from 13.8% of all closings in May 2015 to 23.7% of closings in May 2016. Conversely, the share belonging to single-family homes dropped to 76.3% of closings from 86.2% of closings.
There was a 21.4% fall year-over-year in the average unit size of newly sold homes to 960 square feet in May 2016.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in May, but did not appear to be dragging the market. Together, foreclosures plus REO closings represented 6.7% of existing home closings, down from 28.1% a year earlier. The percentage of existing home closings involving foreclosures declined to 0.6% in May from 8.9% a year earlier while REO closings as a percentage of existing home closings fell to 6.2% from 19.3% a year earlier.