New home sales in the Fayetteville, NC market dropped year-over-year in October, but there were signals the market may be evening out with a percentage fall less steep as in September 2011. Sales sank 25.0% from a year earlier to 84, relative to a 28.5% decline in September from the year earlier.
A total of 1,352 new homes were sold during the 12 months that ended in October, down from 1,380 for the year that ended in September.
As a percentage of overall housing sales, new home sales made up 26.8%. This is down from the a year earlier when new home sales represented 28.3% of total sales. Sales of new and existing homes declined year-over-year in October after also falling in September year-over-year.
Pricing and Mortgage Trends
The average value for new homes sold in October 2011 was $200,216, a move from $201,677 a year earlier. This followed a 7.6% decline in September from a year earlier.
For newly sold homes, the average mortgage size gained year-over-year in contrast to new home prices. In October 2011, there was a 21.6% boost in the average mortgage size, reaching $200,169. In September 2011, average mortgage size fell 14.5% from a year earlier. Of the overall sale price, the percentage that was being financed rose 18.4 percentage points year-over-year to 100.0% in October 2011. In September 2011, there was a 6.8 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 gained from 89.3% in October 2010 to 95.2% of sales in October 2011. At the same time, the share of new home sales belonging to attached units sank to 4.8% of sales from 10.7% of sales.
There was a 4.2% decline year-over-year in the average unit size of newly sold homes to 1,869 square feet in October 2011. The average size of newly sold homes moved from 1,969 square feet in September 2010 to 1,918 square feet in September 2011.
Foreclosures and real estate owned (REO) sales remained a burden on the market. Out of all existing home sales, foreclosures combined with REO sales accounted for 33.0% of sales. They represented 34.9% in October 2010. The percentage of existing home sales involving foreclosures rose to 26.5% in October from 21.1% a year earlier while REO sales as a percentage of existing home sales slipped to 6.5% from 13.7% a year earlier.
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