In the Greensboro, NC market in July, new home closings fell year-over-year, and the percentage decline, which was steeper than June 2016, gave signals of weakening market conditions. New home closings saw a decline of 30.9% from the year earlier to 85. This came after a 19.8% fall year-over-year in June.
A total of 926 new homes were sold during the 12 months that ended in July, down from 964 for the year that ended in June.
As a percentage of overall housing closings, new home closings represented 8.6%. This is a fall 10.1% of closings a year earlier. Following a year-over-year rise in June, closings of new and existing homes declined year-over-year in July.
Pricing and Mortgage Trends
For newly sold homes, the average price jumped 17.5% year-over-year in July to $261,641 per unit. This hike compares to a 7.3% decline in June from a year earlier.
There was a hike year-over-year in the average mortgage size on new homes along with new home prices. It climbed to $227,787 in July, a 11.9% rise. Average mortgage size fell 4.1% in June 2016 from a year earlier.
Other Market Trends
Closings of attached units, as a percentage of new home closings, have climbed from last year while closings of single-family homes have fallen. The share of new home closings belonging to attached units increased from 15.4% of closings in July 2015 to 29.4% of closings in July 2016. Conversely, the share belonging to single-family homes slid to 70.6% of closings from 84.6% of closings.
There was a 23.5% fall year-over-year in the average unit size of newly sold homes to 1,938 square feet in July 2016. The average size of newly sold homes moved from 2,628 square feet in June 2015 to 1,829 square feet in June 2016.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in July, but did not appear to be dragging the market. Together, foreclosures plus REO closings made up 16.8% of existing home closings, down from 22.5% a year earlier. The percentage of existing home closings involving foreclosures dropped to 10.5% in July from 12.2% a year earlier while REO closings as a percentage of existing home closings slid to 6.3% from 10.3% a year earlier.