In the Jackson, TN market in August, closings of new homes fell year-over-year, and the decline was by a larger percentage than the July 2015. New home closings moved from 49 a year earlier to 7 after the figure moved from 7 in July 2014 to 6 in July 2015.
A total of 44 new homes were sold during the 12 months that ended in August, down from 86 for the year that ended in July.
Last year, 49 of 203 total closings were new homes, and this percentage saw a decline as new home closings this year made up 7 of the 201 total closings. After a drop in July year-over-year, new and existing home closings stayed level in August.
Pricing and Mortgage Trends
The average price of new homes rose to $290,155 from last year's $264,059. This was on the heels of a 42.7% rise in July year-over-year.
From the year-ago figure of $181,158, the average mortgage size on new homes moved up to $237,228. Average mortgage size on new homes went from $179,355 in July 2014 to $286,953 in July 2015.
Other Market Trends
There was no change in the composition of the new home market with regard to the types of properties sold in August 2015.
Foreclosures and real estate owned (REO) closings decreased in August from a year earlier, but remained a drag on the market. Together, foreclosures plus REO closings made up 25.3% of existing home closings, down from 27.9% a year earlier. The percentage of existing home closings involving foreclosures went from 12.3% in August 2014 to 12.9% in August 2015 and REO closings as a percentage of existing home closings slid to 12.4% from 15.6% a year earlier.