In May, the Knoxville, TN market saw a fall year-over-year in new home closings, 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 11 out of the 282 total closings, down on a percentage basis from 79 of 1,260 a year earlier. For new and existing homes, closings sank in May after also declining in April year-over-year.
Pricing and Mortgage Trends
The average price of new homes rose to $326,553 from last year's $248,263. This was on the heels of a 1.6% boost in April year-over-year.
Average mortgage size on new homes rose from $206,932 to $249,526. Average mortgage size jumped 14.4% in April 2016 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 made up 22.1% of existing home closings, below 23.9% a year earlier. The percentage of existing home closings involving foreclosures fell to 8.1% in May from 15.7% a year earlier while REO closings as a percentage of existing home closings increased to 14.0% from 8.1%.