In May, the Harrisonburg, VA market saw a drop year-over-year in new home closings, sliding after a growth in April 2016. New home closings moved from 9 a year earlier to 6 after the figure moved from 8 in April 2015 to 11 in April 2016.
A total of 92 new homes were sold during the 12 months that ended in May, down from 95 for the year that ended in April.
New home closings were 5.9% of total closings a year earlier, and this percentage saw a decline as new home closings this year made up 6 of the 225 total closings. Following a year-over-year increase in April, closings of new and existing homes also grew year-over-year in May.
Pricing and Mortgage Trends
The average value of newly sold homes in May 2016 was $206,183, down from last year's $239,839. This came after a 23.6% drop in April from a year earlier.
There was a decline in average mortgage size on new homes, going from $161,147 last year to $155,834 in May 2016. Average mortgage size on new homes went from $240,636 in April 2015 to $187,865 in April 2016.
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.
The average unit size of newly sold homes rose from 2,184 square feet a year earlier to 3,111 square feet.
Foreclosures and real estate owned (REO) closings continued to increase in May from a year earlier and stayed a drag on the market. Together, foreclosures plus REO closings represented 26.9% of existing home closings, up from 17.5% a year earlier. The percentage of existing home closings involving foreclosures rose to 21.9% in May from 6.3% a year earlier while REO closings as a percentage of existing home closings dropped to 5.0% from 11.2% a year earlier.