In the Wilmington, NC market, new home closings fell year-over-year in July, and there were hints of worsening market conditions as the percentage drop was steeper than June 2015. New home closings saw a 75.0% fall from a year earlier to 24. In comparison, new home closings in the same month last year saw a 60.5% decline year-over-year in June.
A total of 758 new homes were sold during the 12 months that ended in July, down from 830 for the year that ended in June.
As a percentage of overall housing closings, new home closings made up 6.1%. This is down from the 10.9% of closings a year earlier. Closings of new and existing homes sank year-over-year in July after also falling in June year-over-year.
Pricing and Mortgage Trends
The average price of newly sold homes fell 8.1% year-over-year in July to $233,391 per unit. This decline follows a move from $237,365 per unit to $236,989 from June 2014 to June 2015.
The average mortgage size on newly sold homes sank year-over-year in contrast to the average price of new homes. Average mortgage size fell by 4.5% from a year earlier, settling at $198,363 in July. In June 2015, average mortgage size fell 11.3% from a year earlier.
Other Market Trends
Closings of attached units, as a percentage of new home closings, have risen from last year while closings of single-family homes have fallen. The share of new home closings belonging to attached units climbed from 4.2% of closings in July 2014 to 20.8% of closings in July 2015. Conversely, the share belonging to single-family homes dropped to 79.2% of closings from 95.8% of closings.
For all new homes sold, the average unit size slid 17.3% year-over-year to 1,766 square feet in July 2015. The average size of newly sold homes moved from 1,992 square feet in June 2014 to 2,010 square feet in June 2015.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in July, but did not look to be a burden on the market. Out of all existing home closings, foreclosures combined with REO closings made up 12.2% of closings, below 22.7% a year earlier. The percentage of existing home closings involving foreclosures dropped to 4.3% in July from 11.7% a year earlier while REO closings as a percentage of existing home closings fell to 7.8% from 11.1% a year earlier.