In the Knoxville, TN market in May, closings of new homes declined year-over-year, and the decline was by a larger percentage than the April 2016. New home closings moved from 79 a year earlier to 11 after the figure moved from 66 in April 2015 to 24 in April 2016.
A total of 515 new homes were sold during the 12 months that ended in May, down from 583 for the year that ended in April.
New home closings were 6.3% of total closings a year earlier, and this percentage saw a fall as new home closings this year made up 11 of the 282 total closings. For new and existing homes, closings sank in May after also declining in April year-over-year.
Pricing and Mortgage Trends
The average new home value went from $248,263 last year to $326,553. This came after a 1.6% gain in April year-over-year.
Average mortgage size on new homes went from $206,932 a year earlier to $249,526. In April 2016, average mortgage size rose 14.4% from a year earlier.
Other Market Trends
As a share of new home closings, single-family home closings have risen from last year while the share belonging to attached units has fallen.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in May, but did not appear to be dragging the market. Combined, foreclosures plus REO closings accounted for 22.1% of existing home closings, below 23.9% a year earlier. The percentage of existing home closings involving foreclosures declined to 8.1% in May from 15.7% a year earlier while REO closings as a percentage of existing home closings jumped to 14.0% from 8.1%.