The Burlington, NC market saw a drop in new home closings year-over-year in June, a downhill move after a surge in May 2016. Closings fell 46.3% from a year earlier to 22. In comparison, new home closings in the same month last year saw a 69.0% jump year-over-year in May.
A total of 409 new homes were sold during the 12 months that ended in June, down from 428 for the year that ended in May.
Out of all housing closings, new home closings represented 14.7%. This is down from the a year earlier when new home closings made up 15.9% of total closings. After rising year-over-year in May, closings of new and existing homes fell year-over-year in June.
Pricing and Mortgage Trends
The average per-unit price of newly sold homes rose year-over-year to $209,250 in June, up 9.5% from last year. This boost compares to a 3.0% fall in May from a year earlier.
Along with new home prices, there was an increase year-over-year in the average mortgage size on newly sold homes. In June 2016, average mortgage size gained 3.5% from a year earlier to $192,420. In May 2016, average mortgage size on newly sold homes saw a 8.1% decline 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 82.9% of new closings in June 2015 to 86.4% of closings in June 2016. Meanwhile, attached units as a percentage of all new home closings fell to 13.6% of closings from 17.1% of closings.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in June, but did not appear to be dragging the market. Together, foreclosures plus REO closings represented 10.9% of existing home closings, down from 20.7% a year earlier. The percentage of existing home closings involving foreclosures slid to 2.3% in June from 9.7% a year earlier while REO closings as a percentage of existing home closings fell to 8.6% from 11.1% a year earlier.