In the Virginia Beach, VA market in October, closings of new homes sank year-over-year, and the percentage fall was more severe than September 2015, indicating the market may be worsening. New home closings saw a drop of 23.8% from the year earlier to 122. This came on the heels of a 17.4% fall year-over-year in September.
A total of 2,004 new homes were sold during the 12 months that ended in October, down from 2,042 for the year that ended in September.
New home closings represented 5.4% of overall housing closings. This is a fall 6.7% of closings a year earlier. After rising year-over-year in September, closings of new and existing homes slid year-over-year in October.
Pricing and Mortgage Trends
The average price of new homes grew year-over-year in October to $348,208 per unit, a rise of 6.8%. This rise follows a move from $329,025 per unit to $327,305 from September 2014 to September 2015.
There was a lift year-over-year in the average mortgage size on new homes along with new home prices. In October 2015, there was a 6.3% boost in the average mortgage size, reaching $310,927. Average mortgage size went from $293,271 in September 2014 to $295,077 in September 2015.
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. The share of new home closings belonging to single-family homes jumped from 65.6% in October 2014 to 78.7% of closings in October 2015. Meanwhile, attached units as a percentage of all new home closings sank to 21.3% of closings from 34.4% of closings.
For all new homes sold, the average unit size gained 3.5% year-over-year to 2,315 square feet in October 2015. The average size of newly sold homes moved from 2,288 square feet in September 2014 to 2,306 square feet in September 2015.
Foreclosures and real estate owned (REO) closings fell in October from a year earlier, but remained a drag on the market. Foreclosures and REO closings, taken together, represented 31.2% of existing closings, lower than 34.5% a year earlier. The percentage of existing home closings involving foreclosures dropped to 16.9% in October from 19.7% a year earlier and REO closings moved from 14.8% of existing home closings in October 2014 to 14.3% in October 2015.