In the Ames, IA market in February, new home closings gained year-over-year, rebounding from a year-over-year decline in January 2016. New home closings moved from 3 a year earlier to 8 after the figure moved from 11 in January 2015 to 6 in January 2016.
A total of 104 new homes were sold during the 12 months that ended in February, up from 99 for the year that ended in January.
New home closings were 8 out of 91 total closings, making up 8.8%. This is up on a percentage basis from 3 of 64 a year earlier. Following a decline in January year-over-year, closings of new and existing homes grew year-over-year in February.
Pricing and Mortgage Trends
The average price of new homes rose to $357,438 from last year's $318,033. This came after a 17.3% fall in January from a year earlier.
The average mortgage size on new homes was $296,233, up from $234,667. Average mortgage size on new homes went from $195,229 in January 2015 to $308,858 in January 2016.
Other Market Trends
There was no change in the composition of the new home market with regard to the types of properties sold in February 2016.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in February, but did not appear to be dragging the market. Out of all existing home closings, foreclosures combined with REO closings accounted for 9.6% of closings, below 9.8% a year earlier. The percentage of existing home closings involving foreclosures dropped to 3.6% in February from 4.9% a year earlier while REO closings as a percentage of existing home closings rose to 6.0% from 4.9%.