Closings of new homes in the Winston-Salem, NC market remained steady year-over-year in June, evening out after a boost in May from the year earlier. Closings were unchanged from last year at 66. In the same month last year, closings gained 2.5%.

A total of 832 new homes were sold during the 12 months that ended in June, equal to the number of new homes sold for the year that ended in May.

Out of all housing closings, new home closings made up 7.8%. They represented 8.5% of closings a year earlier. For new and existing homes, closings increased year-over-year in June after also increasing in May year-over-year.

Pricing and Mortgage Trends

In June, the average price of newly sold homes increased 5.7% year-over-year to $230,398 per unit. This gain is smaller than the 13.1% boost in May year-over-year.

There was a bump year-over-year in the average mortgage size on new homes along with new home prices. The average mortgage size rose to $207,396 in June, marking a 7.5% rise compared with a year earlier. In May 2016, average mortgage size climbed 8.0% 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 June 2016. Single-family home closings have made up 83.3% of new home closings while attached unit closings have accounted for 16.7% of closings.

The average unit size of newly sold homes slid 11.6% year-over-year to 2,012 square feet in June 2016. For newly sold homes, an average size decline contrasting with an average price hike was also seen in May 2016 when the average size of newly sold homes dropped 3.0% to 2,132 square feet. The average size of newly sold homes moved from 2,197 square feet in May 2015 to 2,132 square feet in May 2016.

Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in June, but did not appear to be dragging the market. Together, foreclosures plus REO closings represented 18.1% of existing home closings, down from 22.5% a year earlier. The percentage of existing home closings involving foreclosures fell to 9.6% in June from 11.5% a year earlier while REO closings as a percentage of existing home closings declined to 8.5% from 11.0% a year earlier.

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