The Memphis, TN market saw a drop in new home closings year-over-year in July, sliding down after a surge in June 2015. Closings sank 12.7% from a year earlier to 69. This came on the heels of a 19.0% hike year-over-year in June.

A total of 870 new homes were sold during the 12 months that ended in July, down from 880 for the year that ended in June.

Out of all housing closings, new home closings made up 3.0%. A year earlier, new home closings made up 3.5% of total closings. Closings of new and existing homes gained year-over-year in July after also rising in June year-over-year.

Pricing and Mortgage Trends

Average price of newly sold homes had a 9.5% lift year-over-year to $235,135 per unit in July. This gain is smaller than the 11.7% surge in June year-over-year.

For newly sold homes, the average mortgage size saw a boost year-over-year along with new home prices. It climbed 13.9% in July from a year earlier to $213,099. Average mortgage size rose 9.3% in June 2015 from a year earlier.

Other Market Trends

Single-family homes accounted for a greater percentage of new home closings than last year. The share of new home closings belonging to single-family homes climbed from 98.7% in July 2014 to all of closings in July 2015. Conversely, the share of new home closings belonging to attached units sank to no part of closings from 1.3% of closings.

There was a 20.5% boost year-over-year in the average unit size of newly sold homes to 2,813 square feet in July 2015. An increase was also seen in June 2015 when the average size of new homes sold rose 13.0% to 2,897 square feet. The average size of newly sold homes moved from 2,563 square feet in June 2014 to 2,897 square feet in June 2015.

Foreclosures and real estate owned (REO) closings decreased in July from a year earlier, but stayed a drag on the market. Out of all existing home closings, foreclosures combined with REO closings made up 33.5% of closings, below 37.9% a year earlier. The percentage of existing home closings involving foreclosures rose to 18.3% in July from 17.1% a year earlier while REO closings as a percentage of existing home closings dropped to 15.2% from 20.8% a year earlier.

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