In the Nashville, TN market in July, closings of new homes rose year-over-year, but the percentage edged up less than June 2015, suggesting the market may be leveling out. There was a 17.6% climb in new home closings from a year earlier. This came on the heels of a 21.1% jump year-over-year in June.
A total of 5,273 new homes were sold during the 12 months that ended in July, up from 5,190 for the year that ended in June.
Out of all housing closings, new home closings made up 11.6%. As a part of the whole, new home closings were 11.2% a year earlier. For new and existing homes, closings grew year-over-year in July after also increasing in June year-over-year.
Pricing and Mortgage Trends
In July, the average price of newly sold homes climbed 5.8% year-over-year to $340,610 per unit. This bump is higher than the 3.8% rise in June year-over-year.
The average mortgage size on new homes moved north year-over-year along with new home prices. In July 2015, average mortgage size rose 6.3% from a year earlier to $279,449. Average mortgage size climbed 1.8% in June 2015 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. Single-family home closings increased from 84.1% of new closings in July 2014 to 85.7% of closings in July 2015. At the same time, the share of new home closings belonging to attached units declined to 14.3% of closings from 15.9% of closings.
The average unit size of newly sold homes fell 18.1% year-over-year to 2,084 square feet in July 2015. This decline was opposite the price rise, a pattern also seen in June 2015 when the average size of newly sold homes sank 20.3% to 2,094 square feet. The average size of newly sold homes moved from 2,629 square feet in June 2014 to 2,094 square feet in June 2015.
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. Out of all existing home closings, foreclosures combined with REO closings made up 11.2% of closings, below 16.2% a year earlier. The percentage of existing home closings involving foreclosures dropped to 5.5% in July from 8.5% a year earlier while REO closings as a percentage of existing home closings fell to 5.7% from 7.7% a year earlier.