In August, there was a decline year-over-year in new home closings in the Birmingham, AL market, but the decline was less than the year-over-year decline in July. New home closings moved from 7 a year earlier to 5 after the figure moved from 16 in July 2014 to 10 in July 2015.

A total of 146 new homes were sold during the 12 months that ended in August, down from 148 for the year that ended in July.

New home closings were 5 out of the 491 total closings, a move on a percentage basis from 7 of 488 a year earlier. After new and existing closings jumped in July year-over-year, they stayed level in August.

Pricing and Mortgage Trends

The average per-unit price of new homes was $165,722, compared with $189,018 last year. This came after a 6.0% fall in July from a year earlier.

Average mortgage size on new homes moved from $150,965 to $149,922. Average mortgage size on new homes went from $207,764 in July 2014 to $190,440 in July 2015.

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.

Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in August, but did not appear to be dragging the market. Together, foreclosures plus REO closings represented 19.8% of existing home closings, down from 24.9% a year earlier. The percentage of existing home closings involving foreclosures went from 11.0% in August 2014 to 10.1% in August 2015 and REO closings as a percentage of existing home closings fell to 9.7% from 13.9% a year earlier.

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