New home closings dropped year-over-year in May in the Spartanburg, SC market, and the decline was by a larger percentage than the April 2016. New home closings moved from 52 a year earlier to 5 after the figure moved from 61 in April 2015 to 8 in April 2016.
A total of 307 new homes were sold during the 12 months that ended in May, down from 354 for the year that ended in April.
New home closings represented 5 out of the 408 total closings, which is a smaller percentage than the 52 of 489 total closings a year earlier. Closings of new and existing homes sank year-over-year in May after also falling in April year-over-year.
Pricing and Mortgage Trends
The average price of new homes rose to $273,576 from last year's $185,465. This followed a 53.7% rise in April year-over-year.
From the year-ago figure of $163,759, the average mortgage size on new homes moved up to $233,281. Average mortgage size on new homes went from $177,138 in April 2015 to $257,566 in April 2016.
Other Market Trends
There was no change in the composition of the new home market with regard to the types of properties sold in May 2016.
The average unit size of newly sold homes rose from 1,350 square feet a year earlier to 2,192 square feet.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in May, but did not appear to be dragging the market. Out of all existing home closings, foreclosures combined with REO closings accounted for 12.7% of closings, below 26.3% a year earlier. The percentage of existing home closings involving foreclosures declined to 5.2% in May from 14.0% a year earlier while REO closings as a percentage of existing home closings dropped to 7.4% from 12.4% a year earlier.