Closings of new homes in the Memphis, TN market saw no change year-over-year in April, stabilizing after a surge in March from the year earlier. Closings remained steady from a year earlier at 72. There was a climb of 64.8% in new home closings in the same month last year.
A total of 1,058 new homes were sold during the 12 months that ended in April, equal to the number of new homes sold for the year that ended in March.
New home closings made up 3.8% of overall closings, unchanged from a year earlier. Closings of new and existing homes remained steady in April after rising in March year-over-year.
Pricing and Mortgage Trends
The average price of new homes increased year-over-year 6.6% in April to $256,033 per unit. This hike compares to a 1.3% decline in March from a year earlier.
For newly sold homes, the average mortgage size grew year-over-year along with new home prices. Average mortgage size rose 10.5% to $230,091 in April from a year earlier. In March 2016, average mortgage size on newly sold homes saw a 1.6% fall from a year earlier.
Other Market Trends
Closings of attached units, as a percentage of new home closings, have gained from last year while closings of single-family homes have slumped. The share of new home closings belonging to attached units climbed from no part of closings in April 2015 to 11.1% of closings in April 2016. Meanwhile, single-family home closings as a percentage of all new home closings fell to 88.9% of closings from all of closings.
The average unit size of newly sold homes jumped 1.5% year-over-year to 2,766 square feet in April 2016. The average size of newly sold homes moved from 2,674 square feet in March 2015 to 1,902 square feet in March 2016.
Foreclosures and real estate owned (REO) closings declined in April from a year earlier, but stayed a drag on the market. Together, foreclosures plus REO closings accounted for 34.0% of existing home closings, down from 40.0% a year earlier. The percentage of existing home closings involving foreclosures slid to 16.4% in April from 20.0% a year earlier while REO closings as a percentage of existing home closings fell to 17.6% from 19.9% a year earlier.