In the Knoxville, TN market, new home closings declined year-over-year in September, drawing a downward slope off of a rise in August 2015. There was a 19.7% drop in new home closings from a year earlier. This came on the heels of a 17.5% rise year-over-year in August.
A total of 752 new homes were sold during the 12 months that ended in September, down from 766 for the year that ended in August.
New home closings represented 5.4% of overall housing closings. This is down from the 7.7% of closings a year earlier. Following a year-over-year increase in August, closings of new and existing homes also climbed year-over-year in September.
Pricing and Mortgage Trends
In September, the average price of newly sold homes slid 2.6% year-over-year to $258,784 per unit. This fall compares to a 7.4% rise in August year-over-year.
In September 2015, average mortgage size on new homes went from $212,419 in September 2014 to $211,138 in September 2015. Average mortgage size increased 8.1% in August 2015 from a year earlier.
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 share of new home closings belonging to attached units climbed from 11.3% of closings in September 2014 to 15.8% of closings in September 2015. Meanwhile, single-family home closings as a percentage of all new home closings dropped to 84.2% of closings from 88.7% of closings.
There was a 4.7% drop year-over-year in the average unit size of newly sold homes to 2,302 square feet in September 2015. In August, the average size of new homes sold went from 2,325 square feet a year earlier to 2,432 square feet.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in September, but did not look to be a burden on the market. Foreclosures and REO closings, taken together, made up 19.0% of existing closings, lower than 25.9% a year earlier. The percentage of existing home closings involving foreclosures declined to 9.8% in September from 15.4% a year earlier while REO closings as a percentage of existing home closings slid to 9.2% from 10.5% a year earlier.