New home closings dropped year-over-year in July in the Raleigh, NC market, swinging downward off a year-over-year boost in June 2015. New home closings saw a drop of 16.3% from the year earlier to 473. In comparison, new home closings in the same month last year saw a 6.5% hike year-over-year in June.
A total of 6,056 new homes were sold during the 12 months that ended in July, down from 6,148 for the year that ended in June.
Out of all housing closings, new home closings represented 18.8%. This is down from the a year earlier when new home closings made up 21.8% of total closings. Following a year-over-year increase in June, closings of new and existing homes declined year-over-year in July.
Pricing and Mortgage Trends
In July, the average price of newly sold homes gained year-over-year to $328,297 per unit, a 3.3% rise. This lift is smaller than the 3.3% hike in June year-over-year.
The average mortgage size on newly sold homes jumped year-over-year along with the average price of new homes. It increased to $265,151 in July, a 2.3% lift. Average mortgage size rose 1.2% in June 2015 from a year earlier.
Other Market Trends
There was no change in the composition of the new home market with regard to the types of properties sold in July 2015. Single-family home closings have accounted for 83.1% of new home closings while attached unit closings have represented 16.9% of closings.
The average unit size of newly sold homes grew 2.8% year-over-year to 2,735 square feet in July 2015. In June, the average size of new homes sold went from 2,637 square feet a year earlier to 2,668 square feet. An increase in both the average size and price of newly sold homes was also seen in June 2015 when the average size rose 1.2% to 2,668 square feet.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in July, but did not appear to be dragging the market. Out of all existing home closings, foreclosures combined with REO closings made up 9.7% of closings, below 15.7% a year earlier. The percentage of existing home closings involving foreclosures dropped to 4.5% in July from 7.6% a year earlier while REO closings as a percentage of existing home closings declined to 5.2% from 8.1% a year earlier.