Closings of new homes dropped year-over-year in August in the Roanoke, VA market, and the decline was by a larger percentage than the July 2015. New home closings moved from 10 a year earlier to 3 after the figure moved from 11 in July 2014 to 4 in July 2015.

A total of 81 new homes were sold during the 12 months that ended in August, down from 88 for the year that ended in July.

Last year, 10 of 400 total closings were new homes, and this percentage saw a decline as new home closings this year made up 3 of the 405 total closings. After staying stable in July from a year earlier, closings of new and existing homes gained in August.

Pricing and Mortgage Trends

The average new home price was $180,557, down from $332,844 a year earlier. This was on the heels of a 1.7% decline in July from a year earlier.

Average mortgage size on newly sold homes saw a decline year-over-year from $223,850 to $178,570. Average mortgage size on new homes went from $227,569 in July 2014 to $174,051 in July 2015.

Other Market Trends

The share of new home closings made up by attached units has risen while the share belonging to single-family homes has fallen.

The average unit size of newly sold homes fell from 2,541 square feet a year earlier to 2,120 square feet.

Foreclosures and real estate owned (REO) closings continued to increase in August from a year earlier and remained a burden on the market. Foreclosures and REO closings, taken together, accounted for 27.4% of existing home closings, higher than 20.8% a year earlier. The percentage of existing home closings involving foreclosures rose to 16.4% in August from 13.1% a year earlier while REO closings as a percentage of existing home closings rose to 10.9% from 7.7%.

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