In the Little Rock, AR market in January, new home closings fell year-over-year, and the decline was by a larger percentage than the December 2015. New home closings moved from 58 a year earlier to 1 after the figure moved from 72 in December 2014 to 10 in December 2015.
A total of 288 new homes were sold during the 12 months that ended in January, down from 345 for the year that ended in December.
New home closings were 8.0% of total closings a year earlier, and this percentage saw a decline as new home closings this year made up 1 of the 515 total closings. Following a year-over-year decline in December, closings of new and existing homes also dropped year-over-year in January.
Pricing and Mortgage Trends
The average value of newly sold homes in January 2016 was $115,000, down from last year's $216,300. This was on the heels of a 19.5% boost in December year-over-year.
There was a decline in average mortgage size on new homes, going from $192,481 last year to $119,715 in January 2016. Average mortgage size on new homes went from $203,693 in December 2014 to $219,563 in December 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 January 2016.
Foreclosures and real estate owned (REO) closings decreased in January from a year earlier, but stayed a drag on the market. Out of all existing home closings, foreclosures combined with REO closings represented 36.8% of closings, below 37.4% a year earlier. The percentage of existing home closings involving foreclosures went from 20.8% in January 2015 to 20.4% in January 2016 and REO closings moved from 16.6% of existing home closings in January 2015 to 16.3% in January 2016.