In the Durham, NC market, closings of new homes grew year-over-year in September, rebounding from a year-over-year decline in August 2015. There was a 15.8% climb in new home closings from a year earlier. This came after a 1.2% decline year-over-year in August.
A total of 1,621 new homes were sold during the 12 months that ended in September, up from 1,599 for the year that ended in August.
Closings of new homes made up 19.6% of total closings, consistent with last year's figures. Following a year-over-year increase in August, closings of new and existing homes also increased year-over-year in September.
Pricing and Mortgage Trends
In September, the average value of new homes saw a 25.5% bump year-over-year as it grew to $349,272 per unit. This hike is an improvement over the 9.3% gain in August year-over-year.
The average mortgage size on newly sold homes climbed year-over-year along with the average price of new homes. In September 2015, the average mortgage size was $261,608, up 15.4% from a year earlier. In August 2015, average mortgage size increased 11.6% 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. Single-family home closings rose from 71.2% of new closings in September 2014 to 81.4% of closings in September 2015. Conversely, the share of new home closings belonging to attached units slid to 18.6% of closings from 28.8% of closings.
There was a 6.9% lift year-over-year in the average unit size of newly sold homes to 2,558 square feet in September 2015. In August, the average size of new homes sold went from 2,431 square feet a year earlier to 1,988 square feet.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in September, but did not look to be a burden on the market. Foreclosures and REO closings, taken together, made up 14.8% of existing closings, lower than 18.8% a year earlier. The percentage of existing home closings involving foreclosures went from 8.8% in September 2014 to 9.5% in September 2015 and REO closings as a percentage of existing home closings sank to 5.3% from 10.0% a year earlier.