In the Memphis, TN market, new home closings dropped year-over-year in September, but there were signs the market may be leveling out from a percentage decline less than August 2015. Closings slumped 39.8% from a year earlier to 53. In comparison, new home closings in the same month last year saw a 53.5% fall year-over-year in August.
A total of 815 new homes were sold during the 12 months that ended in September, down from 850 for the year that ended in August.
As a percentage of overall housing closings, new home closings made up 2.8%. This is down from the a year earlier when new home closings accounted for 4.4% of total closings. Following a year-over-year rise in August, closings of new and existing homes declined year-over-year in September.
Pricing and Mortgage Trends
In September, there was a 2.5% gain year-over-year in the average price of newly sold homes, reaching $219,355 per unit. This hike is smaller than the 7.9% rise in August year-over-year.
There was a bump year-over-year in the average mortgage size on new homes along with new home prices. It jumped 16.4% in September from a year earlier to $208,865. In August 2015, average mortgage size on newly sold homes saw a 13.1% boost 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 gained from 94.3% of new closings in September 2014 to 98.1% of closings in September 2015. At the same time, the share of new home closings belonging to attached units sank to 1.9% of closings from 5.7% of closings.
The average unit size of newly sold homes grew 1.7% year-over-year to 2,665 square feet in September 2015. An increase in both the average size and price of newly sold homes was also seen in August 2015 when the average size climbed 12.7% to 2,627 square feet. In August, the average size of new homes sold went from 2,331 square feet a year earlier to 2,627 square feet.
Out of all existing home closings, foreclosures combined with REO closings represented 36.2% of closings. They accounted for 36.2% in September 2014. The percentage of existing home closings involving foreclosures went from 18.8% in September 2014 to 18.7% in September 2015 and REO closings as a percentage of existing home closings stayed level at 17.5%.