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Freshest Numbers For Raleigh Show New Home Closings and Prices Increase

Posted on: Apr 06, 2013 07:27:40 AM

The Raleigh, NC market saw a rise in new home closings in January year-over-year, but the market seemed to show signs of stabilizing as the percentage gained was less than in December 2012. New home closings saw a 24.9% climb from a year earlier to 306. In comparison, new home closings in the same month last year saw a 27.8% hike year-over-year in December.

A total of 4,733 new homes were sold during the 12 months that ended in January, up from 4,672 for the year that ended in December.

Of the total number of closings, new home closings made up 22.8%. A year earlier, new home closings made up 22.1% of total closings. Closings of new and existing homes grew year-over-year in January after also rising in December year-over-year.

Pricing and Mortgage Trends

For newly sold homes, the average price rose 1.8% year-over-year in January to $279,565 per unit. This rise is smaller than the 3.1% rise in December year-over-year.

For newly sold homes, the average mortgage size saw a rise year-over-year along with new home prices. In January 2013, the average mortgage size on newly sold homes saw a 2.6% rise from a year earlier. Average mortgage size increased 4.1% in December 2012 from a year earlier. For newly sold homes, the percentage of sale price being financed moved from 84.5% of average price to 85.2% from a year earlier. It moved from 85.0% in December 2011 to 85.9% in December 2012.

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 jumped from 79.2% in January 2012 to 95.1% of closings in January 2013. Conversely, the share of new home closings belonging to attached units fell to 4.9% of closings from 20.8% of closings.

There was a move in the average unit size of newly sold homes from 2,465 square feet in January 2012 to 2,443 square feet in January 2013. In December 2012, the average size of newly sold homes dipped 4.6% from the year earlier.

Foreclosures and real estate owned (REO) closings fell in January from a year earlier, but remained a burden on the market. Together, foreclosures plus REO closings represented 34.2% of existing home closings, down from 45.4% a year earlier. The percentage of existing home closings involving foreclosures sank to 14.6% in January from 27.3% a year earlier while REO closings as a percentage of existing home closings rose to 19.6% from 18.1%.

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