In September, the Chattanooga, TN market saw a decline year-over-year in new home closings, and the decline was by a larger percentage than the August 2015. New home closings moved from 19 a year earlier to 10 after the figure moved from 22 in August 2014 to 20 in August 2015.
A total of 212 new homes were sold during the 12 months that ended in September, down from 221 for the year that ended in August.
On a percentage basis, new home closings as a part of total closings decreased to 1.1% from 2.6% a year earlier. Following a year-over-year increase in August, closings of new and existing homes also rose year-over-year in September.
Pricing and Mortgage Trends
The average new home price was $308,270, up from $291,481 a year earlier. This was on the heels of a 7.2% surge in August year-over-year.
The average mortgage size went down to $254,106 from $262,150 a year earlier. In August 2015, average mortgage size dropped 27.7% from a year earlier.
Other Market Trends
As a share of new home closings, single-family home closings have risen from last year while the share belonging to attached units has fallen.
The average unit size of newly sold homes rose from 1,563 square feet a year earlier to 2,054 square feet.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in September, but did not appear to be dragging the market. Foreclosures and REO closings, taken together, represented 20.5% of existing closings, lower than 30.6% a year earlier. The percentage of existing home closings involving foreclosures sank to 10.7% in September from 16.4% a year earlier while REO closings as a percentage of existing home closings dropped to 9.8% from 14.2% a year earlier.