In July, there was an increase in closings of new homes in the Cedar Rapids, IA market year-over-year, but the percentage lift, which was less than June 2015, seemed to suggest market leveling. Closings gained 10.5% from a year earlier to 42. This came after a 17.9% hike year-over-year in June.
A total of 369 new homes were sold during the 12 months that ended in July, up from 365 for the year that ended in June.
Of 613 total closings, 42 were of new homes. This is a hike from 3.6% of closings a year earlier. Following a year-over-year rise in June, closings of new and existing homes declined year-over-year in July.
Pricing and Mortgage Trends
Average price of newly sold homes saw a 3.8% lift year-over-year in July to $249,829 per unit. This surge is higher than the 1.3% bump in June year-over-year.
The average mortgage size on newly sold homes saw a fall year-over-year in contrast to new home prices. In July 2015, average mortgage size declined 3.6% from a year earlier to $200,275. Average mortgage size rose 8.8% in June 2015 from a year earlier.
Other Market Trends
As a share of new home closings, single-family home closings have climbed from last year while the share belonging to attached units has fallen. Single-family home closings jumped from 81.6% of new closings in July 2014 to 95.2% of closings in July 2015. At the same time, the share of new home closings belonging to attached units dropped to 4.8% of closings from 18.4% of closings.
There was a 16.5% drop year-over-year in the average unit size of newly sold homes to 1,286 square feet in July 2015. This fall was opposite the price boost, a pattern also seen in June 2015 when the average size of newly sold homes sank 4.5% to 1,576 square feet. The average size of newly sold homes moved from 1,650 square feet in June 2014 to 1,576 square feet in June 2015.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in July, but did not look to be a burden on the market. Foreclosures and REO closings, taken together, made up 11.4% of existing closings, lower than 42.5% a year earlier. The percentage of existing home closings involving foreclosures sank to 5.1% in July from 38.9% a year earlier while REO closings as a percentage of existing home closings gained to 6.3% from 3.5%.