In September, closings of new homes increased year-over-year in the Nashville, TN market, but there were signs of market leveling as the percentage gain was less than August 2015. There was a 30.2% climb in new home closings from a year earlier. This was after the housing market saw a 34.0% rise year-over-year in August.
A total of 5,662 new homes were sold during the 12 months that ended in September, up from 5,538 for the year that ended in August.
Of 4,261 total closings, 535 were of new homes. This is better than the 11.3% of closings a year earlier. Following a year-over-year increase in August, closings of new and existing homes also jumped year-over-year in September.
Pricing and Mortgage Trends
In September, the average value of new homes saw a 4.8% bump year-over-year as it grew to $335,823 per unit. This surge is better than the 4.0% lift in August year-over-year.
The average mortgage size on new homes moved north year-over-year along with new home prices. It grew to $276,826 in September, a 6.5% lift. In August 2015, average mortgage size climbed 3.4% 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 grew from 81.0% in September 2014 to 84.5% of closings in September 2015. Conversely, the share of new home closings belonging to attached units declined to 15.5% of closings from 19.0% of closings.
The average unit size of newly sold homes fell 17.8% year-over-year to 2,210 square feet in September 2015. This drop was opposite the price bump, a pattern also seen in August 2015 when the average size of newly sold homes sank 13.6% to 2,334 square feet. In August, the average size of new homes sold went from 2,701 square feet a year earlier to 2,334 square feet.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in September, but did not appear to be dragging the market. Combined, foreclosures plus REO closings accounted for 13.7% of existing home closings, below 15.6% a year earlier. The percentage of existing home closings involving foreclosures slid to 6.2% in September from 7.5% a year earlier and REO closings moved from 8.1% of existing home closings in September 2014 to 7.6% in September 2015.