New home closings in the St. Louis, MO market increased year-over-year in July, but there were signs of market leveling as the percentage lift was less than June 2015. New home closings saw a 83.1% climb from a year earlier to 130. In comparison, new home closings in the same month last year saw a 91.5% jump year-over-year in June.
A total of 1,793 new homes were sold during the 12 months that ended in July, up from 1,734 for the year that ended in June.
Of the total number of closings, new home closings made up 2.2%. They accounted for 1.4% of closings a year earlier. Closings of new and existing homes increased year-over-year in July after also rising in June year-over-year.
Pricing and Mortgage Trends
In July, there was a 26.5% decline year-over-year in the average per-unit price of newly sold homes, settling at $286,172. This drop is a drop off from the 27.0% fall in June from a year earlier.
Average mortgage size on new homes sank year-over-year in contrast to new home prices. In July 2015, there was a 17.5% fall in the average mortgage size on new homes to $247,719. Average mortgage size dropped 21.0% in June 2015 from a year earlier.
Other Market Trends
Closings of attached units, as a percentage of new home closings, have gained from last year while closings of single-family homes have slumped. Attached unit closings grew from 7.0% of all closings in July 2014 to 11.5% of closings in July 2015. Conversely, the share belonging to single-family homes slid to 88.5% of closings from 93.0% of closings.
For all new homes sold, the average unit size slid 13.7% year-over-year to 2,267 square feet in July 2015. The drop in size was less sharp than the decline in average price of newly sold homes, making the movement similar to June 2015 when the average size saw a 13.2% declined to 2,384 square feet from a year earlier. A decrease in both the average size and price of newly sold homes was also seen in June 2015 when the average size gained 13.2% to 2,384 square feet. In June, the average size of new homes sold went from 2,748 square feet a year earlier to 2,384 square feet.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in July, but did not appear to be dragging the market. Foreclosures and REO closings, taken together, represented 17.9% of existing closings, lower than 27.2% a year earlier. The percentage of existing home closings involving foreclosures sank to 8.6% in July from 15.6% a year earlier while REO closings as a percentage of existing home closings declined to 9.3% from 11.5% a year earlier.