In July, there was a drop year-over-year in new home closings in the Burlington, NC market, moving downward after a boost in June 2015. There was a 14.7% drop in new home closings from a year earlier. This came on the heels of a 76.2% rise year-over-year in June.
A total of 335 new homes were sold during the 12 months that ended in July, down from 340 for the year that ended in June.
New home closings represented 14.4% of overall housing closings. This is down from the a year earlier when new home closings represented 15.5% of total closings. After rising year-over-year in June, closings of new and existing homes dropped year-over-year in July.
Pricing and Mortgage Trends
The average price of new homes gained year-over-year in July to $215,455 per unit, a rise of 26.1%. This surge compares to a 2.8% drop in June from a year earlier.
The average mortgage size on new homes moved north year-over-year along with new home prices. In July 2015, the average mortgage size was $188,147, a 27.8% boost from a year earlier. In June 2015, average mortgage size jumped 3.4% from a year earlier.
Other Market Trends
Single-family homes accounted for a greater percentage of new home closings than last year. Single-family home closings increased from 76.5% of new closings in July 2014 to 79.3% of closings in July 2015. Meanwhile, attached units as a percentage of all new home closings fell to 20.7% of closings from 23.5% of closings.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in July, but did not look to be a burden on the market. Combined, foreclosures plus REO closings accounted for 18.5% of existing home closings, below 26.3% a year earlier. The percentage of existing home closings involving foreclosures slid to 8.1% in July from 14.0% a year earlier while REO closings as a percentage of existing home closings dropped to 10.4% from 12.4% a year earlier.