In the Virginia Beach, VA market, closings of new homes dropped year-over-year in November, and the percentage fall that was steeper than October 2015 gave implications of worsening market conditions. There was a 36.2% fall in new home closings from a year earlier. This came after a 20.6% fall year-over-year in October.
A total of 1,963 new homes were sold during the 12 months that ended in November, down from 2,017 for the year that ended in October.
As a percentage of overall housing closings, new home closings represented 4.9%. This is down from the a year earlier when new home closings made up 7.4% of total closings. Closings of new and existing homes dropped year-over-year in November after also falling in October year-over-year.
Pricing and Mortgage Trends
In November, the average value of new homes saw a 7.3% bump year-over-year as it grew to $372,005 per unit. This boost is better than the 6.2% lift in October year-over-year.
Average mortgage size on new homes jumped year-over-year along with new home prices. In November 2015, average mortgage size increased 6.1% from a year earlier to $320,754. In October 2015, average mortgage size grew 5.8% from a year earlier.
Other Market Trends
As a share of new home closings, single-family home closings have climbed from last year while the share belonging to attached units has fallen. Single-family home closings jumped from 77.9% of new closings in November 2014 to 87.4% of closings in November 2015. Conversely, the share of new home closings belonging to attached units slid to 12.6% of closings from 22.1% of closings.
There was a 1.8% drop year-over-year in the average unit size of newly sold homes to 2,299 square feet in November 2015. In October, the average size of new homes sold went from 2,236 square feet a year earlier to 2,311 square feet.
Foreclosures and real estate owned (REO) closings declined in November from a year earlier, but remained a drag on the market. Foreclosures and REO closings, taken together, made up 33.2% of existing closings, lower than 34.6% a year earlier. The percentage of existing home closings involving foreclosures went from 17.4% in November 2014 to 17.7% in November 2015 and REO closings as a percentage of existing home closings sank to 15.5% from 17.2% a year earlier.