In the Winston-Salem, NC market in January, new home closings jumped year-over-year, but there were signs of market leveling as the percentage rise was less than December 2015. Closings increased 4.3% from a year earlier to 48. This followed a 16.9% rise year-over-year in December.
A total of 854 new homes were sold during the 12 months that ended in January, up from 852 for the year that ended in December.
As a percentage of overall housing closings, new home closings made up 9.6% of overall housing closings. A year ago, new home closings represented 9.1%. Closings of new and existing homes stayed level after declining in December year-over-year.
Pricing and Mortgage Trends
For newly sold homes, the average price climbed 7.8% year-over-year in January to $210,033 per unit. This bump is smaller than the 23.3% lift in December year-over-year.
The average mortgage size on newly sold homes climbed year-over-year along with the average price of new homes. It grew 1.5% in January from a year earlier to $175,626. In December 2015, average mortgage size on newly sold homes saw a 14.8% rise year-over-year 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 78.3% in January 2015 to 83.3% of closings in January 2016. Conversely, the share of new home closings belonging to attached units declined to 16.7% of closings from 21.7% of closings.
There was a 36.9% fall year-over-year in the average unit size of newly sold homes to 1,326 square feet in January 2016. This drop was opposite the price gain, a pattern also seen in December 2015 when the average size of newly sold homes sank 21.7% to 1,670 square feet. The average size of newly sold homes moved from 2,132 square feet in December 2014 to 1,670 square feet in December 2015.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in January, but did not look to be a burden on the market. Foreclosures and REO closings, taken together, made up 23.0% of existing closings, lower than 33.5% a year earlier. The percentage of existing home closings involving foreclosures fell to 10.4% in January from 16.8% a year earlier while REO closings as a percentage of existing home closings slid to 12.6% from 16.6% a year earlier.