In the Virginia Beach, VA market in July, closings of new homes jumped year-over-year, moving up after a fall in June 2015. There was a 8.3% hike in new home closings from a year earlier. This came on the heels of a 6.3% decline year-over-year in June.
A total of 1,807 new homes were sold during the 12 months that ended in July, up from 1,795 for the year that ended in June.
As a percentage of overall housing closings, new home closings represented 5.6% of overall housing closings. New home closings were 5.4% of overall closings last year. Following a year-over-year increase in June, closings of new and existing homes also grew year-over-year in July.
Pricing and Mortgage Trends
The average value of newly sold homes moved to $354,176 in July 2015 from $355,092 in July 2014. This followed a 1.3% rise in June year-over-year.
The average mortgage size on newly sold homes moved south year-over-year in contrast to new home prices. In July 2015, the average mortgage size on newly sold homes saw a 3.9% drop from a year earlier. Average mortgage size jumped 1.6% in June 2015 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 rose from 70.8% in July 2014 to 82.1% of closings in July 2015. Conversely, the share of new home closings belonging to attached units declined to 17.9% of closings from 29.2% of closings.
For all new homes sold, the average unit size fell 1.3% year-over-year to 2,466 square feet in July 2015. In June, the average size of new homes sold went from 2,355 square feet a year earlier to 2,326 square feet.
Foreclosures and real estate owned (REO) closings fell in July from a year earlier, but stayed a drag on the market. Combined, foreclosures plus REO closings represented 25.4% of existing home closings, below 31.1% a year earlier. The percentage of existing home closings involving foreclosures declined to 12.6% in July from 15.5% a year earlier while REO closings as a percentage of existing home closings sank to 12.8% from 15.6% a year earlier.