In the Knoxville, TN market in January, new home closings declined year-over-year, but there were signs of market improvement with a percentage fall less steep than in December 2015. Closings slumped 48.4% from a year earlier to 16. This was after the housing market saw a 50.8% decline year-over-year in December.
A total of 682 new homes were sold during the 12 months that ended in January, down from 697 for the year that ended in December.
Out of all housing closings, new home closings made up 2.9%. This is down from the a year earlier when new home closings represented 4.5% of total closings. Following a year-over-year rise in December, closings of new and existing homes declined year-over-year in January.
Pricing and Mortgage Trends
For newly sold homes, the average price increased 16.1% year-over-year in January to $302,766 per unit. This hike compares to a 5.9% drop in December from a year earlier.
The average mortgage size on newly sold homes saw a bump year-over-year along with new home prices. In January 2016, the average mortgage size on newly sold homes saw a 23.4% boost from a year earlier. In December 2015, average mortgage size fell 15.0% 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 increased from 6.5% of closings in January 2015 to 18.8% of closings in January 2016. Conversely, the share belonging to single-family homes dropped to 81.2% of closings from 93.5% of closings.
There was a 17.8% drop year-over-year in the average unit size of newly sold homes to 1,950 square feet in January 2016. In December, the average size of new homes sold went from 2,548 square feet a year earlier to 1,958 square feet.
Foreclosures and real estate owned (REO) closings fell in January from a year earlier, but remained a burden on the market. Out of all existing home closings, foreclosures combined with REO closings represented a quarter of closings, below 29.0% a year earlier. The percentage of existing home closings involving foreclosures sank to 14.0% in January from 15.5% a year earlier while REO closings as a percentage of existing home closings declined to 11.0% from 13.4% a year earlier.