Closings of new homes slid year-over-year in September in the St. Louis, MO market, a shift downward off a rise in August 2015. New home closings saw a 3.1% drop from a year earlier to 125. In comparison, new home closings in the same month last year saw a 10.5% hike year-over-year in August.
A total of 2,326 new homes were sold during the 12 months that ended in September, down from 2,330 for the year that ended in August.
Out of all housing closings, new home closings accounted for 2.6%. New home closings were 3.0% of overall closings last year. For new and existing homes, closings gained year-over-year in September after also increasing in August year-over-year.
Pricing and Mortgage Trends
Average price of newly sold homes had a 14.8% drop year-over-year to $267,811 per unit in September. This decline is larger than the 14.0% fall in August from a year earlier.
Average mortgage size on new homes sank year-over-year in contrast to new home prices. In September 2015, average mortgage size on new homes sold was $224,456, down 15.9% from a year earlier. In August 2015, average mortgage size on newly sold homes saw a 10.9% drop from a year earlier.
Other Market Trends
There has been little change in the composition of the market with regard to the types of properties sold. From a year ago, single-family home closings have moved from 87.6% of new home closings to 87.2% of closings while attached units have gone from 12.4% of closings to 12.8% of closings.
For all new homes sold, the average unit size climbed 7.0% year-over-year to 2,329 square feet in September 2015. For newly sold homes, an average size gain contrasting with an average price decline was also seen in August 2015 when the average size of newly sold homes declined 9.1% to 2,396 square feet. The average size of newly sold homes moved from 2,196 square feet in August 2014 to 2,396 square feet in August 2015.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in September, but did not look to be a burden on the market. Together, foreclosures plus REO closings represented 22.0% of existing home closings, down from 26.1% a year earlier. The percentage of existing home closings involving foreclosures went from 11.3% in September 2014 to 10.7% in September 2015 and REO closings as a percentage of existing home closings sank to 11.3% from 14.8% a year earlier.