In May, closings of new homes in the Raleigh, NC market grew year-over-year, moving up after a decline in April 2016. New home closings saw a 7.8% boost from a year earlier to 540. In comparison, new home closings in the same month last year saw a 15.3% fall 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%. A year ago, new home closings represented 20.2%. After dropping in April from a year earlier, closings of new and existing homes jumped year-over-year in May.
Pricing and Mortgage Trends
For newly sold homes, the average price rose 5.7% year-over-year in May to $335,161 per unit. This gain is better than the 3.2% lift in April year-over-year.
Average mortgage size on new homes gained year-over-year along with new home prices. In May 2016, the average mortgage size on newly sold homes saw a 1.9% surge from a year earlier. Average mortgage size rose 4.5% in April 2016 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 jumped 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 fell to 23.3% of closings from 25.7% of closings.
There was a 19.0% lift year-over-year in the average unit size of newly sold homes 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 fall from a year earlier in May, but did not look to be a burden on the market. Foreclosures and REO closings, taken together, accounted for 7.5% of existing closings, lower than 9.9% a year earlier. The percentage of existing home closings involving foreclosures dropped to 3.4% in May from 4.6% a year earlier while REO closings as a percentage of existing home closings slid to 4.1% from 5.3% a year earlier.