There was an increase in new home closings in the Burlington, NC market in March year-over-year, rising after a fall in February 2016. New home closings saw a jump of 2.5% from the year earlier to 41. This came after a 10.8% decline year-over-year in February.
A total of 403 new homes were sold during the 12 months that ended in March, up from 402 for the year that ended in February.
New home closings made up 22.9% of overall housing closings. This is better than the 20.9% of closings a year earlier. After rising year-over-year in February, closings of new and existing homes declined year-over-year in March.
Pricing and Mortgage Trends
For newly sold homes, the average price jumped 12.6% year-over-year in March to $235,466 per unit. This gain compares to a 1.6% drop in February from a year earlier.
The average mortgage size on newly sold homes saw a lift year-over-year along with new home prices. In March 2016, average mortgage size climbed 30.0% from a year earlier to $220,919. In February 2016, average mortgage size on newly sold homes saw a 3.7% fall from a year earlier.
Other Market Trends
Single-family homes accounted for a greater percentage of new home closings than last year. The share of new home closings belonging to single-family homes climbed from three quarters in March 2015 to 92.7% of closings in March 2016. At the same time, the share of new home closings belonging to attached units dropped to 7.3% of closings from a quarter of closings.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in March, but did not look to be a burden on the market. Together, foreclosures plus REO closings represented 20.3% of existing home closings, down from 25.2% a year earlier. The percentage of existing home closings involving foreclosures went from 10.6% in March 2015 to 10.1% in March 2016 and REO closings as a percentage of existing home closings declined to 10.1% from 14.6% a year earlier.