New home closings dropped year-over-year in August in the Clarksville, TN-KY market, and the percentage decline that was steeper than July 2015 gave implications of worsening market conditions. New home closings saw a 27.4% decline from a year earlier to 53. In comparison, new home closings in the same month last year saw a 18.7% decline year-over-year in July.
A total of 575 new homes were sold during the 12 months that ended in August, down from 595 for the year that ended in July.
Out of all housing closings, new home closings accounted for 8.6%. This is down from the a year earlier when new home closings represented 12.0% of total closings. For new and existing homes, closings rose year-over-year in August after also increasing in July year-over-year.
Pricing and Mortgage Trends
For newly sold homes, the average price grew 8.7% year-over-year in August to $222,418 per unit. This bump is an improvement over the 3.7% hike in July year-over-year.
For newly sold homes, the average mortgage size saw a boost year-over-year along with new home prices. Average mortgage size jumped 8.9% to $217,675 in August from a year earlier. In July 2015, average mortgage size rose 2.8% 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 August 2015. Single-family home closings have made up all of new home closings while attached unit closings have accounted for no part of closings.
There was a 4.0% decline year-over-year in the average unit size of newly sold homes to 1,855 square feet in August 2015. For newly sold homes, an average size decline contrasting with an average price hike was also seen in July 2015 when the average size of newly sold homes slid 16.8% to 1,768 square feet. In July, the average size of new homes sold went from 2,125 square feet a year earlier to 1,768 square feet.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in August, but did not appear to be dragging the market. Combined, foreclosures plus REO closings accounted for 24.3% of existing home closings, below 27.2% a year earlier. The percentage of existing home closings involving foreclosures dropped to 10.3% in August from 13.4% a year earlier and REO closings moved from 13.8% of existing home closings in August 2014 to 14.0% in August 2015.