Richmond, VA - Latest Figures for New Home Sales Suggest Market Climb Losing Steam
Posted on: Feb 06, 2012 09:37:19 AM
In October, sales of new homes in the Richmond, VA market increased year-over-year, but the percentage rise was not as steep as September 2011, giving signs of market stabilizing. Sales went from 116 in October 2010 to 117 in October 2011, compared with a 13.7% climb in September from the year earlier.
A total of 1,623 new homes were sold during the 12 months that ended in October, up from 1,622 for the year that ended in September.
Out of all housing sales, new home sales represented 10.2%. A year ago, 10.3% of total sales were new home sales. Following a decline in September year-over-year, sales of new and existing homes rose year-over-year in October.
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Pricing and Mortgage Trends
The average per-unit value of new homes declined to $292,625 in October, a decline of 8.2% year-over-year from a year earlier. This decline is a swing down from a 2.1% rise in September year-over-year.
In October 2011, average mortgage size on newly sold homes moved from $239,737 to $240,857 from October 2010. In September 2011, average mortgage size on newly sold homes saw a 6.2% decline from a year earlier. For new home sales, the percentage of the sale price that was being financed increased 7.1 percentage points year-over-year to 82.3% in October 2011. This came after a 6.9 percentage point decline in September from a year earlier.
Richmond, VA - Latest Figures for New Home Sales Suggest Market Climb Losing Steam
Posted on: Feb 06, 2012 09:37:19 AM
In October, sales of new homes in the Richmond, VA market increased year-over-year, but the percentage rise was not as steep as September 2011, giving signs of market stabilizing. Sales went from 116 in October 2010 to 117 in October 2011, compared with a 13.7% climb in September from the year earlier.
A total of 1,623 new homes were sold during the 12 months that ended in October, up from 1,622 for the year that ended in September.
Out of all housing sales, new home sales represented 10.2%. A year ago, 10.3% of total sales were new home sales. Following a decline in September year-over-year, sales of new and existing homes rose year-over-year in October.
Pricing and Mortgage Trends
The average per-unit value of new homes declined to $292,625 in October, a decline of 8.2% year-over-year from a year earlier. This decline is a swing down from a 2.1% rise in September year-over-year.
In October 2011, average mortgage size on newly sold homes moved from $239,737 to $240,857 from October 2010. In September 2011, average mortgage size on newly sold homes saw a 6.2% decline from a year earlier. For new home sales, the percentage of the sale price that was being financed increased 7.1 percentage points year-over-year to 82.3% in October 2011. This came after a 6.9 percentage point decline in September from a year earlier.
Other Market Trends
Single-family homes accounted for a greater percentage of new home sales than last year. The share of new home sales belonging to single-family homes increased from 82.8% in October 2010 to 94.9% of sales in October 2011. Meanwhile, attached units as a percentage of all new home sales dropped to 5.1% of sales from 17.2% of sales.
There was a 38.0% fall year-over-year in the average unit size of newly sold homes to 1,796 square feet in October 2011. A drop was also seen in September 2011 when the average size of new homes sold declined 22.9% to 1,860 square feet.
Foreclosures and real estate owned (REO) sales stayed a drag on the market. Together, foreclosures plus REO sales accounted for 43.9% of existing home sales. In October 2010, they made up 51.3%. The percentage of existing home sales involving foreclosures fell to 20.5% in October from 27.9% a year earlier while REO sales as a percentage of existing home sales stayed level at 23.3%.
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Source: Housing Intelligence