Closings of new homes declined year-over-year in November in the Raleigh, NC market, but the percentage decline, which was less steep than in October 2015, seemed to be hinting at market improvement. There was a 11.1% decline in new home closings from a year earlier. In comparison, new home closings in the same month last year saw a 12.6% fall year-over-year in October.
A total of 6,162 new homes were sold during the 12 months that ended in November, down from 6,220 for the year that ended in October.
Out of all housing closings, new home closings made up 27.2%. A year earlier, new home closings accounted for 28.0% of total closings. Following a year-over-year decline in October, closings of new and existing homes also declined year-over-year in November.
Pricing and Mortgage Trends
The average price of new homes increased year-over-year 6.9% in November to $333,639 per unit. This bump is better than the 6.6% lift in October year-over-year.
The average mortgage size on new homes moved north year-over-year along with new home prices. In November 2015, the average mortgage size was $275,811, a 7.1% rise from a year earlier. It went from $264,874 to $263,962 from October 2014 to October 2015.
Other Market Trends
The share of new home closings made up by attached units has risen while the share belonging to single-family homes has fallen. Attached unit closings gained from 21.6% of all closings in November 2014 to 25.4% of closings in November 2015. Meanwhile, single-family home closings as a percentage of all new home closings fell to 74.6% of closings from 78.4% of closings.
There was a 13.9% gain year-over-year in the average unit size of newly sold homes to 2,974 square feet in November 2015. In October, the average size of new homes sold went from 2,695 square feet a year earlier to 2,624 square feet.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in November, but did not look to be a burden on the market. Foreclosures and REO closings, taken together, accounted for 13.8% of existing closings, lower than 16.1% a year earlier. The percentage of existing home closings involving foreclosures declined to 6.9% in November from 8.7% a year earlier and REO closings moved from 7.4% of existing home closings in November 2014 to 6.9% in November 2015.