In the Wilmington, NC market, new home closings slid year-over-year in April, but the decline in percentage terms was not as steep as March 2016, signaling market improvement. There was a 70.6% fall in new home closings from a year earlier. In comparison, new home closings in the same month last year saw a 73.1% drop year-over-year in March.
A total of 644 new homes were sold during the 12 months that ended in April, down from 721 for the year that ended in March.
As a percentage of overall housing closings, new home closings accounted for 4.5%. This is down from the a year earlier when new home closings accounted for 12.5% of total closings. For new and existing homes, closings slid in April after also declining in March year-over-year.
Pricing and Mortgage Trends
The average price of newly sold homes jumped year-over-year 11.4% in April to $297,453 per unit. This gain is smaller than the 18.6% hike in March year-over-year.
The average mortgage size on newly sold homes grew year-over-year along with the average price of new homes. In April 2016, the average mortgage size was $266,159, up 17.2% from a year earlier. In March 2016, average mortgage size grew 19.1% from a year earlier.
Other Market Trends
There has not been much movement in the composition of the market with regard of the types of properties sold. From a year ago, single-family home closings have moved from 97.2% of new home closings to 96.9% of closings while attached units have gone from 2.8% of closings to 3.1% of closings.
For all new homes sold, the average unit size dropped 13.7% year-over-year to 2,003 square feet in April 2016. In March, the average size of new homes sold went from 2,234 square feet a year earlier to 2,998 square feet.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in April, but did not appear to be dragging the market. Foreclosures and REO closings, taken together, made up 12.8% of existing closings, lower than 16.8% a year earlier. The percentage of existing home closings involving foreclosures declined to 5.2% in April from 8.2% a year earlier and REO closings moved from 8.5% of existing home closings in April 2015 to 7.6% in April 2016.