In the Greensboro, NC market, closings of new homes declined year-over-year in May, and there were signs the market may be weakening with a percentage fall steeper than April 2016. New home closings saw a 16.7% drop from a year earlier to 75. This came after a 8.5% decline year-over-year in April.
A total of 983 new homes were sold during the 12 months that ended in May, down from 998 for the year that ended in April.
Out of all housing closings, new home closings represented 6.7%. This is a decline 9.2% of closings a year earlier. Closings of new and existing homes gained year-over-year in May after also rising in April year-over-year.
Pricing and Mortgage Trends
Average price of newly sold homes saw a 7.6% gain year-over-year in May to $238,995 per unit. This surge is smaller than the 15.9% hike in April year-over-year.
The average mortgage size on newly sold homes saw a lift year-over-year along with new home prices. The average mortgage size saw a 2.6% surge year-over-year to $199,980 in May. In April 2016, average mortgage size increased 10.4% from a year earlier.
Other Market Trends
As a percentage of new home closings, attached unit closings have grown from last year while single-family home closings have dropped. The share of new home closings belonging to attached units climbed from 22.2% of closings in May 2015 to 36.0% of closings in May 2016. Meanwhile, single-family home closings as a percentage of all new home closings sank to 64.0% of closings from 77.8% of closings.
There was a 5.8% drop year-over-year in the average unit size of newly sold homes to 2,332 square feet in May 2016. The average size of newly sold homes moved from 2,362 square feet in April 2015 to 2,991 square feet in April 2016.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in May, but did not look to be a burden on the market. Out of all existing home closings, foreclosures combined with REO closings made up 22.1% of closings, below 25.1% a year earlier. The percentage of existing home closings involving foreclosures declined to 10.3% in May from 15.7% a year earlier while REO closings as a percentage of existing home closings increased to 11.8% from 9.5%.