In the Memphis, TN market in December, closings of new homes sank year-over-year, and the market seemed to be worsening in light of the percentage fall steeper than November 2015. There was a 29.6% drop in new home closings from a year earlier. This came on the heels of a 5.8% decline year-over-year in November.
A total of 830 new homes were sold during the 12 months that ended in December, down from 859 for the year that ended in November.
As a percentage of overall housing closings, new home closings made up 4.1%. This is a drop 5.7% of closings a year earlier. For new and existing homes, closings sank in December after also declining in November year-over-year.
Pricing and Mortgage Trends
For newly sold homes, the average price rose 11.6% year-over-year in December to $252,347 per unit. This bump is smaller than the 16.7% gain in November year-over-year.
There was a lift year-over-year in the average mortgage size on new homes along with new home prices. In December 2015, there was a 9.8% bump in the average mortgage size, reaching $220,633. In November 2015, average mortgage size on newly sold homes saw a 14.4% boost year-over-year from a year earlier.
Other Market Trends
As a percentage of new home closings, attached unit closings have risen from last year while single-family home closings have dropped. Attached unit closings gained from 2.0% of all closings in December 2014 to 7.2% of closings in December 2015. At the same time, the share belonging to single-family homes fell to 92.8% of closings from 98.0% of closings.
The average unit size of newly sold homes rose 13.1% year-over-year to 2,587 square feet in December 2015. In November, the average size of new homes sold went from 2,067 square feet a year earlier to 2,073 square feet.
Foreclosures and real estate owned (REO) closings fell in December from a year earlier, but stayed a drag on the market. Out of all existing home closings, foreclosures combined with REO closings accounted for 37.5% of closings, below 41.9% a year earlier. The percentage of existing home closings involving foreclosures declined to 17.3% in December from 19.0% a year earlier while REO closings as a percentage of existing home closings dropped to 20.2% from 22.9% a year earlier.