New home closings dropped year-over-year in February in the Winston-Salem, NC market, and the percentage fall was steeper than January 2013. Closings declined 52.9% from a year earlier to 24, relative to a 47.2% drop in January from the year earlier.
A total of 511 new homes were sold during the 12 months that ended in February, down from 538 for the year that ended in January.
A year earlier, new home closings accounted for 10.1% of overall housing closings and the percentage declined to 4.9% of closings in February 2013. Following a year-over-year increase in January, closings of new and existing homes dipped year-over-year in February.
Pricing and Mortgage Trends
The average value for new homes sold in February 2013 was $173,646, a move from $173,314 a year earlier. This came after a 22.2% drop in January from a year earlier.
The average mortgage size on new homes moved north year-over-year along with new home prices. The average mortgage size rose to $177,739 in February, marking an 18.8% lift compared with a year earlier. In January 2013, average mortgage size on newly sold homes saw a 17.5% fall from a year earlier.
Other Market Trends
As a percentage of new home closings, attached unit closings have risen from last year while single-family home closings have dropped. The share of new home closings belonging to attached units rose from 3.9% of closings in February 2012 to 12.5% of closings in February 2013. Meanwhile, single-family home closings as a percentage of all new home closings slid to 87.5% of closings from 96.1% of closings.
There was a 36.5% drop year-over-year in the average unit size of newly sold homes to 1,275 square feet in February 2013. In January, the average size of new homes sold went from 2,222 square feet a year earlier to 1,092 square feet.
Foreclosures and real estate owned (REO) closings remained a drag on the market. Out of all existing home closings, foreclosures combined with REO closings represented 49.4% of closings. They accounted for 57.5% in February 2012. The percentage of existing home closings involving foreclosures slipped to 21.9% in February from 30.0% a year earlier while REO closings as a percentage of existing home closings stayed level at 27.5%.
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