In the Winston-Salem, NC market in April, closings of new homes dropped year-over-year, and the percentage fall, which was steeper than March 2016, gave signals that the market may be worsening. New home closings saw a decline of 36.3% from the year earlier to 65. In comparison, new home closings in the same month last year saw a 32.3% drop year-over-year in March.
A total of 810 new homes were sold during the 12 months that ended in April, down from 847 for the year that ended in March.
Out of all housing closings, new home closings represented 9.4%. This is a decline 13.1% of closings a year earlier. Following a year-over-year decline in March, closings of new and existing homes also declined year-over-year in April.
Pricing and Mortgage Trends
For newly sold homes, the average price increased 16.2% year-over-year in April to $213,954 per unit. This hike is an improvement over the 15.4% bump in March year-over-year.
For newly sold homes, the average mortgage size saw a gain year-over-year along with new home prices. Average mortgage size gained 13.8% to $188,176 in April from a year earlier. In March 2016, average mortgage size on newly sold homes saw a 17.1% gain year-over-year from a year earlier.
Other Market Trends
As a share of new home closings, single-family home closings have climbed from last year while the share belonging to attached units has fallen. Single-family home closings rose from 82.4% of new closings in April 2015 to 89.2% of closings in April 2016. Meanwhile, attached units as a percentage of all new home closings dropped to 10.8% of closings from 17.6% of closings.
For all new homes sold, the average unit size dropped 32.2% year-over-year to 1,460 square feet in April 2016.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in April, but did not appear to be dragging the market. Foreclosures and REO closings, taken together, accounted for 17.7% of existing closings, lower than 27.7% a year earlier. The percentage of existing home closings involving foreclosures sank to 9.1% in April from 13.9% a year earlier while REO closings as a percentage of existing home closings fell to 8.6% from 13.8% a year earlier.