Closings of new homes in the Winston-Salem, NC market fell year-over-year in April, and the percentage decline that was steeper than March 2016 gave implications of worsening market conditions. New home closings saw a drop of 36.3% from the year earlier to 65. This was after the housing market saw a 32.3% fall year-over-year in March.
A total of 810 new homes were sold during the 12 months that ended in April, down from 847 for the year that ended in March.
Out of all housing closings, new home closings made up 9.4%. This is down from the a year earlier when new home closings represented 13.1% of total closings. For new and existing homes, closings declined in April after also declining in March year-over-year.
Pricing and Mortgage Trends
The average price of new homes was $213,954 per unit in April, up 16.2%from a year earlier. This gain is an improvement over the 15.4% bump in March year-over-year.
The average mortgage size on newly sold homes saw a hike year-over-year along with new home prices. In April 2016, the average mortgage size was $188,176, a 13.8% gain from a year earlier. Average mortgage size rose 17.1% in March 2016 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 grew from 82.4% in April 2015 to 89.2% of closings in April 2016. Meanwhile, attached units as a percentage of all new home closings fell to 10.8% of closings from 17.6% of closings.
The average unit size of newly sold homes dropped 32.2% year-over-year to 1,460 square feet in April 2016.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in April, but did not appear to be dragging the market. Together, foreclosures plus REO closings made up 17.7% of existing home closings, down from 27.7% a year earlier. The percentage of existing home closings involving foreclosures fell to 9.1% in April from 13.9% a year earlier while REO closings as a percentage of existing home closings sank to 8.6% from 13.8% a year earlier.