New home closings dropped year-over-year in August in the Wichita, KS market, and the market seemed to be weakening with a percentage fall steeper than in July 2015. Closings slumped 12.0% from a year earlier to 44. In comparison, new home closings in the same month last year saw a 3.0% fall year-over-year in July.
A total of 593 new homes were sold during the 12 months that ended in August, down from 599 for the year that ended in July.
New home closings accounted for 3.6% of overall housing closings. A year earlier, new home closings accounted for 4.1% of total closings. Closings of new and existing homes stayed level after declining in July year-over-year.
Pricing and Mortgage Trends
In August, the average price of newly sold homes grew 4.5% year-over-year to $259,214 per unit. This gain compares to a 8.6% fall in July from a year earlier.
Average mortgage size on new homes increased year-over-year along with new home prices. It rose 8.0% in August from a year earlier to $222,687. In July 2015, average mortgage size dropped 9.3% from a year earlier.
Other Market Trends
There was no change in the composition of the new home market with regard to the types of properties sold in August 2015. Single-family home closings have accounted for all of new home closings while attached unit closings have represented no part of closings.
There was a 17.7% hike year-over-year in the average unit size of newly sold homes to 2,618 square feet in August 2015. In July, the average size of new homes sold went from 2,425 square feet a year earlier to 2,541 square feet.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in August, but did not look to be a burden on the market. Foreclosures and REO closings, taken together, made up 15.1% of existing closings, lower than 16.2% a year earlier. The percentage of existing home closings involving foreclosures went from 7.7% in August 2014 to 7.4% in August 2015 and REO closings moved from 8.5% of existing home closings in August 2014 to 7.6% in August 2015.