New home closings in the Lynchburg, VA market sank year-over-year in May, sliding after a growth in April 2016. New home closings moved from 18 a year earlier to 15 after the figure moved from 10 in April 2015 to 11 in April 2016.
A total of 103 new homes were sold during the 12 months that ended in May, down from 106 for the year that ended in April.
Out of all housing closings, new home closings represented 4.7%. This is down from the a year earlier when new home closings made up 6.0% of total closings. Closings of new and existing homes increased in May after staying steady in April from a year earlier.
Pricing and Mortgage Trends
In May, the average value of new homes saw a 33.5% rise year-over-year as it grew to $301,651 per unit. This hike is higher than the 21.8% lift in April year-over-year.
The average mortgage size on new homes moved north year-over-year along with new home prices. In May 2016, the average mortgage size was $267,893, a 41.3% surge from a year earlier. Average mortgage size on new homes went from $179,231 in April 2015 to $192,779 in April 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 May 2016. Single-family home closings have represented all of new home closings while attached unit closings have accounted for no part of closings.
There was a 70.4% fall year-over-year in the average unit size of newly sold homes to 1,056 square feet in May 2016.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in May, but did not appear to be dragging the market. Out of all existing home closings, foreclosures combined with REO closings accounted for 17.5% of closings, below 18.0% a year earlier. The percentage of existing home closings involving foreclosures sank to 8.6% in May from 11.7% a year earlier while REO closings as a percentage of existing home closings climbed to 8.9% from 6.4%.