New home closings sank year-over-year in July in the Winston-Salem, NC market, moving downward after a hike in June 2016. New home closings saw a drop of 12.3% from the year earlier to 64. This came after a 4.5% boost year-over-year in June.
A total of 826 new homes were sold during the 12 months that ended in July, down from 835 for the year that ended in June.
As a percentage of overall housing closings, new home closings represented 8.6% of overall housing closings. A year ago, new home closings represented 9.4%. After rising year-over-year in June, closings of new and existing homes sank year-over-year in July.
Pricing and Mortgage Trends
In July, the average value of new homes saw a 14.3% rise year-over-year as it grew to $224,792 per unit. This rise is better than the 4.9% surge in June year-over-year.
Along with new home prices, there was an increase year-over-year in the average mortgage size on newly sold homes. In July 2016, the average mortgage size on newly sold homes saw a 21.1% lift from a year earlier. In June 2016, average mortgage size on newly sold homes saw a 6.7% rise 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. The share of new home closings belonging to single-family homes jumped from 78.1% in July 2015 to 81.2% of closings in July 2016. Conversely, the share of new home closings belonging to attached units dropped to 18.8% of closings from 21.9% of closings.
There was a 2.3% drop year-over-year in the average unit size of newly sold homes to 2,145 square feet in July 2016. For newly sold homes, an average size drop contrasting with an average price bump was also seen in June 2016 when the average size of newly sold homes declined 11.6% to 2,012 square feet. The average size of newly sold homes moved from 2,277 square feet in June 2015 to 2,012 square feet in June 2016.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in July, but did not appear to be dragging the market. Together, foreclosures plus REO closings made up 17.3% of existing home closings, down from 23.9% a year earlier. The percentage of existing home closings involving foreclosures dropped to 8.1% in July from 10.8% a year earlier while REO closings as a percentage of existing home closings slid to 9.2% from 13.1% a year earlier.