In June, the Wilmington, NC market saw a fall year-over-year in new home closings, and the percentage drop that was steeper than May 2016 gave implications of worsening market conditions. New home closings saw a decline of 80.0% from the year earlier to 17. This was after the housing market saw a 69.3% fall year-over-year in May.
A total of 518 new homes were sold during the 12 months that ended in June, down from 586 for the year that ended in May.
As a percentage of overall housing closings, new home closings made up 2.1%. This is a fall 8.2% of closings a year earlier. Following a year-over-year increase in May, closings of new and existing homes declined year-over-year in June.
Pricing and Mortgage Trends
Average price of newly sold homes had a 25.9% gain year-over-year to $343,853 per unit in June. This rise compares to a 2.6% decline in May from a year earlier.
For newly sold homes, the average mortgage size rose year-over-year along with new home prices. It jumped 11.9% in June from a year earlier to $261,133. In May 2016, average mortgage size grew 10.0% 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 dipped. Attached unit closings increased from 2.4% of all closings in June 2015 to 5.9% of closings in June 2016. Meanwhile, single-family home closings as a percentage of all new home closings fell to 94.1% of closings from 97.6% of closings.
There was a 5.9% boost year-over-year in the average unit size of newly sold homes to 2,405 square feet in June 2016. In May, the average size of new homes sold went from 2,274 square feet a year earlier to 1,934 square feet.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in June, but did not appear to be dragging the market. Out of all existing home closings, foreclosures combined with REO closings made up 10.0% of closings, below 11.7% a year earlier. The percentage of existing home closings involving foreclosures went from 5.1% in June 2015 to 4.8% in June 2016 and REO closings as a percentage of existing home closings dropped to 5.2% from 6.6% a year earlier.