There was a rise in new home closings in the Clarksville, TN-KY market in January year-over-year, but the percentage gain, which was less than December 2015, seemed to suggest market leveling. There was a 8.1% boost in new home closings from a year earlier. This came after a 21.3% jump year-over-year in December.
A total of 655 new homes were sold during the 12 months that ended in January, up from 652 for the year that ended in December.
As a percentage of overall housing closings, new home closings represented 8.4% of overall housing closings. A year ago, 8.8% of total closings were new home closings. Closings of new and existing homes climbed year-over-year in January after also rising in December year-over-year.
Pricing and Mortgage Trends
In January, there was a 1.1% fall year-over-year in the average per-unit price of newly sold homes, settling at $221,111. This drop is a drop off from the 5.8% decline in December from a year earlier.
The average mortgage size on newly sold homes sank year-over-year in contrast to the average price of new homes. Average mortgage size slid by 1.4% from a year earlier, settling at $217,582 in January. In December 2015, average mortgage size on newly sold homes saw a 2.7% drop from a year earlier.
Other Market Trends
There was no change in the composition of the new home market with regard to the types of properties sold in January 2016. Single-family home closings have represented all of new home closings while attached unit closings have accounted for no part of closings.
For all new homes sold, the average unit size declined 8.8% year-over-year to 1,900 square feet in January 2016. The average size of newly sold homes moved from 2,254 square feet in December 2014 to 2,060 square feet in December 2015. A decline was also seen in December 2015 when the average size of new homes sold sank 8.6% to 2,060 square feet.
Foreclosures and real estate owned (REO) closings continued to rise in January from a year earlier and remained a burden on the market. Together, foreclosures plus REO closings made up 34.5% of existing home closings, up from 33.2% a year earlier. The percentage of existing home closings involving foreclosures rose to 17.0% in January from 12.2% a year earlier while REO closings as a percentage of existing home closings slid to 17.5% from 21.0% a year earlier.
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