In the Winston-Salem, NC market, closings of new homes grew year-over-year in July, an upward turn from a decline in June 2015. Closings increased 70.0% from a year earlier to 68. In comparison, new home closings in the same month last year saw a 10.1% drop year-over-year in June.
A total of 740 new homes were sold during the 12 months that ended in July, up from 712 for the year that ended in June.
Out of all housing closings, new home closings made up 9.5%. This is better than the 5.3% of closings a year earlier. After remaining steady in June from a year earlier, closings of new and existing homes fell year-over-year in July.
Pricing and Mortgage Trends
The average price of new homes slid 2.8% year-over-year in July to $196,547 per unit. This fall compares to a 19.8% rise in June year-over-year.
The average mortgage size on newly sold homes declined year-over-year in contrast to the average price of new homes. In July 2015, the average mortgage size on newly sold homes saw a 1.5% drop from a year earlier. In June 2015, average mortgage size on newly sold homes saw a 25.7% surge year-over-year from a year earlier.
Other Market Trends
As a share of new home closings, single-family home closings have climbed from last year while the share belonging to attached units has fallen. The share of new home closings belonging to single-family homes jumped from 70.0% in July 2014 to 76.5% of closings in July 2015. Meanwhile, attached units as a percentage of all new home closings dropped to 23.5% of closings from 30.0% of closings.
The average unit size of newly sold homes increased 6.9% year-over-year to 2,302 square feet in July 2015. In June, the average size of new homes sold went from 1,933 square feet a year earlier to 1,342 square feet.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in July, but did not appear to be dragging the market. Foreclosures and REO closings, taken together, made up 23.4% of existing closings, lower than 31.3% a year earlier. The percentage of existing home closings involving foreclosures slid to 9.8% in July from 17.9% a year earlier and REO closings moved from 13.4% of existing home closings in July 2014 to 13.6% in July 2015.