In the Nashville, TN market, new home closings dropped year-over-year in June, moving south after a bump in May 2016. Closings went from 616 in June 2015 to 613 in June 2016. This came on the heels of a 13.6% jump in May from the year earlier.
A total of 6,774 new homes were sold during the 12 months that ended in June, down from 6,777 for the year that ended in May.
New home closings made up 13.4% of overall housing closings. A year ago, 12.8% of total closings were new home closings. Following a year-over-year increase in May, closings of new and existing homes declined year-over-year in June.
Pricing and Mortgage Trends
In June, there was a 8.3% bump year-over-year in the average price of newly sold homes, reaching $379,173 per unit. This hike is smaller than the 10.6% bump in May year-over-year.
Along with new home prices, there was an increase year-over-year in the average mortgage size on newly sold homes. In June 2016, the average mortgage size was $307,371, up 7.1% from a year earlier. Average mortgage size jumped 10.6% in May 2016 from a year earlier.
Other Market Trends
Single-family homes accounted for a greater percentage of new home closings than last year. Single-family home closings rose from 77.1% of new closings in June 2015 to 84.2% of closings in June 2016. At the same time, the share of new home closings belonging to attached units slid to 15.8% of closings from 22.9% of closings.
The average unit size of newly sold homes gained 1.5% year-over-year to 2,618 square feet in June 2016. In May, the average size of new homes sold went from 2,471 square feet a year earlier to 2,469 square feet.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in June, but did not appear to be dragging the market. Together, foreclosures plus REO closings accounted for 8.1% of existing home closings, down from 11.5% a year earlier. The percentage of existing home closings involving foreclosures fell to 3.5% in June from 5.2% a year earlier while REO closings as a percentage of existing home closings dropped to 4.6% from 6.3% a year earlier.