In the Knoxville, TN market, new home closings slid year-over-year in April, and the market seemed to be weakening with a percentage decline steeper than in March 2016. New home closings saw a fall of 63.6% from the year earlier to 24. This was after the housing market saw a 50.8% drop year-over-year in March.
A total of 583 new homes were sold during the 12 months that ended in April, down from 625 for the year that ended in March.
As a percentage of overall housing closings, new home closings represented 2.8%. This is down from the 5.6% of closings a year earlier. Closings of new and existing homes fell year-over-year in April after also falling in March year-over-year.
Pricing and Mortgage Trends
The average per-unit price of newly sold homes gained year-over-year to $272,295 in April, up 1.6% from last year. This lift follows a move from $280,443 per unit in March 2015 to $279,914 in March 2016.
The average mortgage size on newly sold homes gained year-over-year along with the average price of new homes. The average mortgage size saw a 14.4% bump year-over-year to $254,315 in April. Average mortgage size climbed 11.1% in March 2016 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 grew from 6.1% of closings in April 2015 to 16.7% of closings in April 2016. At the same time, the share belonging to single-family homes sank to 83.3% of closings from 93.9% of closings.
For all new homes sold, the average unit size fell 26.5% year-over-year to 1,812 square feet in April 2016. In March, the average size of new homes sold went from 2,435 square feet a year earlier to 2,341 square feet.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in April, but did not look to be a burden on the market. Combined, foreclosures plus REO closings accounted for 17.8% of existing home closings, below 18.9% a year earlier. The percentage of existing home closings involving foreclosures went from 10.4% in April 2015 to 10.0% in April 2016 and REO closings moved from 8.5% of existing home closings in April 2015 to 7.8% in April 2016.