Closings of new homes declined year-over-year in August in the Greenville, NC market, and there were signs of weakening market conditions with a percentage decline steeper than that of July 2015. New home closings saw a 22.7% fall from a year earlier to 17. This came on the heels of a 7.4% drop year-over-year in July.
A total of 245 new homes were sold during the 12 months that ended in August, down from 250 for the year that ended in July.
New home closings made up 8.3% of overall housing closings. This is down from the a year earlier when new home closings represented 10.5% of total closings. For new and existing homes, closings fell in August after also declining in July year-over-year.
Pricing and Mortgage Trends
The average price of new homes dropped by 2.7% year-over-year to $219,559 per unit in August. This drop compares to a 2.9% surge in July year-over-year.
The average mortgage size on newly sold homes climbed year-over-year in contrast to the average price of new homes. In August 2015, average mortgage size increased 4.3% from a year earlier to $211,120. Average mortgage size slid 4.5% in July 2015 from a year earlier.
Other Market Trends
The percentage of new home closings belonging to single-family homes has risen from last year while the portion of new home closings belonging to attached units has dropped. The share of new home closings belonging to single-family homes rose from 95.5% in August 2014 to all of closings in August 2015. Conversely, the share of new home closings belonging to attached units declined to no part of closings from 4.5% of closings.
For all new homes sold, the average unit size declined 28.1% year-over-year to 1,593 square feet in August 2015. The average size of newly sold homes moved from 2,081 square feet in July 2014 to 1,629 square feet in July 2015.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in August, but did not appear to be dragging the market. Combined, foreclosures plus REO closings made up 23.0% of existing home closings, below 26.1% a year earlier. The percentage of existing home closings involving foreclosures fell to 11.8% in August from 12.8% a year earlier while REO closings as a percentage of existing home closings sank to 11.2% from 13.3% a year earlier.