In the Augusta, GA market in September, closings of new homes dropped year-over-year, but there were signals the market may be evening out from a percentage fall less than August 2015. There was a 51.9% fall in new home closings from a year earlier. In comparison, new home closings in the same month last year saw a 55.2% decline year-over-year in August.
A total of 1,196 new homes were sold during the 12 months that ended in September, down from 1,263 for the year that ended in August.
Out of all housing closings, new home closings represented 6.8%. This is a decline 16.4% of closings a year earlier. Closings of new and existing homes gained year-over-year in September following a drop in August year-over-year.
Pricing and Mortgage Trends
In September, the average value of new homes saw a 7.8% hike year-over-year as it grew to $240,691 per unit. This rise is smaller than the 15.5% boost in August year-over-year.
There was a rise year-over-year in the average mortgage size on new homes along with new home prices. The average mortgage size rose to $228,052 in September, marking a 9.0% boost compared with a year earlier. In August 2015, average mortgage size on newly sold homes saw a 16.0% boost year-over-year from a year earlier.
Other Market Trends
There was no change in the composition of the new home market with regard to the types of properties sold in September 2015. Single-family home closings have made up all of new home closings while attached unit closings have represented no part of closings.
For all new homes sold, the average unit size fell 20.2% year-over-year to 1,908 square feet in September 2015. For newly sold homes, an average size decline contrasting with an average price bump was also seen in August 2015 when the average size of newly sold homes fell 19.4% to 2,073 square feet. The average size of newly sold homes moved from 2,572 square feet in August 2014 to 2,073 square feet in August 2015.
Foreclosures and real estate owned (REO) closings decreased in September from a year earlier, but remained a burden on the market. Foreclosures and REO closings, taken together, accounted for 27.1% of existing closings, lower than 37.2% a year earlier. The percentage of existing home closings involving foreclosures slid to 15.2% in September from 21.4% a year earlier while REO closings as a percentage of existing home closings dropped to 12.0% from 15.8% a year earlier.