In August, there was a fall year-over-year in new home closings in the Fayetteville, NC market, and the market seemed to be worsening in light of the percentage fall steeper than July 2015. New home closings saw a 64.6% drop from a year earlier to 29. This came on the heels of a 61.6% drop year-over-year in July.
A total of 558 new homes were sold during the 12 months that ended in August, down from 611 for the year that ended in July.
As a percentage of overall housing closings, new home closings represented 5.6%. This is down from the a year earlier when new home closings accounted for 15.0% of total closings. For new and existing homes, closings fell in August after also declining in July year-over-year.
Pricing and Mortgage Trends
In August, the average price of newly sold homes slid year-over-year to $214,017 per unit, marking a 5.4% drop from the year-earlier figure. This drop compares to a 13.8% rise in July year-over-year.
For newly sold homes, the average mortgage size increased year-over-year in contrast to new home prices. In August 2015, the average mortgage size was $219,417, up 2.6% from a year earlier. In July 2015, average mortgage size on newly sold homes saw a 12.3% lift year-over-year from a year earlier.
Other Market Trends
Closings of attached units, as a percentage of new home closings, have gained from last year while closings of single-family homes have fallen. The share of new home closings belonging to attached units jumped from 1.2% of closings in August 2014 to 6.9% of closings in August 2015. At the same time, the share belonging to single-family homes fell to 93.1% of closings from 98.8% of closings.
For all new homes sold, the average unit size declined 9.9% year-over-year to 2,379 square feet in August 2015. The average size of newly sold homes moved from 2,562 square feet in July 2014 to 2,838 square feet in July 2015.
Foreclosures and real estate owned (REO) closings continued to rise in August from a year earlier and remained a burden on the market. Foreclosures and REO closings, taken together, made up 47.2% of existing home closings, up from 42.1% a year earlier. The percentage of existing home closings involving foreclosures stayed at 22.1% of closings in August from a year earlier while REO closings as a percentage of existing home closings gained to 25.1% from 20.0%.