In the Raleigh, NC market in May, closings of new homes rose year-over-year, on an upswing after a drop in April 2016. New home closings saw a jump of 7.8% from the year earlier to 540. In comparison, new home closings in the same month last year saw a 15.3% drop year-over-year in April.
A total of 5,996 new homes were sold during the 12 months that ended in May, up from 5,957 for the year that ended in April.
Out of all housing closings, new home closings accounted for 20.4%. They made up 20.2% of closings a year earlier. Closings of new and existing homes gained year-over-year in May following a fall in April year-over-year.
Pricing and Mortgage Trends
In May, the average price of newly sold homes jumped year-over-year to $335,161 per unit, a 5.7% hike. This bump is better than the 3.2% rise in April year-over-year.
Along with new home prices, there was an increase year-over-year in the average mortgage size on newly sold homes. In May 2016, the average mortgage size was $265,752, a 1.9% bump from a year earlier. In April 2016, average mortgage size on newly sold homes saw a 4.5% surge year-over-year from a year earlier.
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. Single-family home closings grew from 74.3% of new closings in May 2015 to 76.7% of closings in May 2016. Conversely, the share of new home closings belonging to attached units sank to 23.3% of closings from 25.7% of closings.
The average unit size of newly sold homes increased 19.0% year-over-year to 3,356 square feet in May 2016. In April, the average size of new homes sold went from 2,593 square feet a year earlier to 2,615 square feet.
Foreclosures and real estate owned (REO) closings continued to decline 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 represented 7.5% of closings, below 9.9% a year earlier. The percentage of existing home closings involving foreclosures declined to 3.4% in May from 4.6% a year earlier while REO closings as a percentage of existing home closings fell to 4.1% from 5.3% a year earlier.