New home closings in the Virginia Beach, VA market sank year-over-year in June, and there were suggestions of worsening market conditions as the percentage drop was steeper than May 2015. New home closings saw a 50.7% fall from a year earlier to 99. This came on the heels of a 36.2% fall year-over-year in May.
A total of 1,218 new homes were sold during the 12 months that ended in June, down from 1,320 for the year that ended in May.
As a percentage of overall housing closings, new home closings made up 3.4%. This is a drop 7.4% of closings a year earlier. Following a fall in May year-over-year, closings of new and existing homes grew year-over-year in June.
Pricing and Mortgage Trends
Average price of newly sold homes saw a 2.5% decline year-over-year in June to $314,888 per unit. This drop compares to a 6.4% boost in May year-over-year.
Average mortgage size on new homes declined year-over-year in contrast to new home prices. Average mortgage size dropped 7.3% to $278,387 in June from a year earlier. In May 2015, average mortgage size jumped 1.3% 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. The share of new home closings belonging to single-family homes grew from 69.7% in June 2014 to 79.8% of closings in June 2015. At the same time, the share of new home closings belonging to attached units dropped to 20.2% of closings from 30.3% of closings.
The average unit size of newly sold homes sank 9.1% year-over-year to 2,158 square feet in June 2015. The average size of newly sold homes moved from 2,331 square feet in May 2014 to 2,330 square feet in May 2015.
Foreclosures and real estate owned (REO) closings declined in June from a year earlier, but remained a drag on the market. Together, foreclosures plus REO closings made up 25.0% of existing home closings, down from 29.1% a year earlier. The percentage of existing home closings involving foreclosures fell to 12.5% in June from 14.1% a year earlier while REO closings as a percentage of existing home closings slid to 12.5% from 15.0% a year earlier.