New home closings declined year-over-year in July in the Clarksville, TN-KY market, and the percentage fall was more severe than June 2015, indicating the market may be worsening. There was a 18.7% drop in new home closings from a year earlier. In comparison, new home closings in the same month last year saw a 16.1% fall year-over-year in June.
A total of 591 new homes were sold during the 12 months that ended in July, down from 605 for the year that ended in June.
New home closings made up 8.9% of overall housing closings. This is down from the 11.6% of closings a year earlier. Following a year-over-year increase in June, closings of new and existing homes also grew year-over-year in July.
Pricing and Mortgage Trends
Average price of newly sold homes had a 3.7% gain year-over-year to $236,230 per unit in July. This bump compares to a 5.5% decline in June from a year earlier.
Along with new home prices, there was an increase year-over-year in the average mortgage size on newly sold homes. The average mortgage size saw a 2.8% lift year-over-year to $226,603 in July. In June 2015, average mortgage size slid 6.5% from a year earlier.
Other Market Trends
Single-family homes accounted for a greater percentage of new home closings than last year. Single-family home closings jumped from 98.7% of new closings in July 2014 to all of closings in July 2015. Meanwhile, attached units as a percentage of all new home closings declined to no part of closings from 1.3% of closings.
For all new homes sold, the average unit size dropped 16.8% year-over-year to 1,768 square feet in July 2015. In June, the average size of new homes sold went from 1,987 square feet a year earlier to 1,860 square feet.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in July, but did not look to be a burden on the market. Together, foreclosures plus REO closings accounted for 24.2% of existing home closings, down from 31.2% a year earlier. The percentage of existing home closings involving foreclosures fell to 12.6% in July from 15.8% a year earlier while REO closings as a percentage of existing home closings sank to 11.6% from 15.4% a year earlier.