Closings of new homes in the Des Moines, IA market rose year-over-year in November, and the percentage rise, which was better than October 2015, suggested the market may be improving. New home closings saw a climb of 16.8% from a year earlier to 118. The came on the heels of a move from 145 in October 2014 to 101 in October 2015.
A total of 1,569 new homes were sold during the 12 months that ended in November, up from 1,552 for the year that ended in October.
New home closings accounted for 12.0% of overall housing closings. This marks a rise from 10.7% of total closings a year earlier. For new and existing homes, closings gained year-over-year in November after also increasing in October year-over-year.
Pricing and Mortgage Trends
The average per-unit price of newly sold homes jumped year-over-year to $314,432 in November, up 16.3% from last year. This hike is better than the 6.7% boost in October year-over-year.
Average mortgage size on new homes gained year-over-year along with new home prices. The average mortgage size saw a 12.2% rise year-over-year to $262,642 in November. Average mortgage size climbed 8.0% in October 2015 from a year earlier.
Other Market Trends
The percentage of new home closings belonging to single-family homes has risen from last year while the portion of new home closings belonging to attached units has dropped. The share of new home closings belonging to single-family homes climbed from 88.1% in November 2014 to 98.3% of closings in November 2015. At the same time, the share of new home closings belonging to attached units fell to 1.7% of closings from 11.9% of closings.
The average unit size of newly sold homes gained 8.7% year-over-year to 1,866 square feet in November 2015. In October, the average size of new homes sold went from 1,730 square feet a year earlier to 1,739 square feet.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in November, but did not appear to be dragging the market. Foreclosures and REO closings, taken together, accounted for 17.9% of existing closings, lower than 21.8% a year earlier. The percentage of existing home closings involving foreclosures declined to 8.0% in November from 10.9% a year earlier and REO closings moved from 10.8% of existing home closings in November 2014 to 10.0% in November 2015.