New home closings declined year-over-year in June in the Kingsport, TN market, and the decline was by a larger percentage than the May 2016. New home closings moved from 11 a year earlier to 6 after the figure moved from 6 in May 2015 to 4 in May 2016.
A total of 59 new homes were sold during the 12 months that ended in June, down from 64 for the year that ended in May.
New home closings represented 6 out of the 364 total closings, which is a smaller percentage than the 11 of 407 total closings a year earlier. After rising year-over-year in May, closings of new and existing homes sank year-over-year in June.
Pricing and Mortgage Trends
The average price of new homes was $215,877, an increase from $159,845 a year earlier. This followed a 10.0% rise in May year-over-year.
From the year-ago figure of $156,439, the average mortgage size on new homes moved up to $193,959. Average mortgage size on new homes went from $253,573 in May 2015 to $128,967 in May 2016.
Other Market Trends
There was no change in the composition of the new home market with regard to the types of properties sold in June 2016.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in June, but did not look to be a burden on the market. Together, foreclosures plus REO closings represented 19.3% of existing home closings, down from 23.0% a year earlier. The percentage of existing home closings involving foreclosures dropped to 8.4% in June from 12.1% a year earlier while REO closings as a percentage of existing home closings stayed level at 10.9%.