In the Mobile, AL market in July, new home closings gained year-over-year, rising after a decline in June 2016. New home closings saw a boost of 6.7% from the year earlier to 32. This came on the heels of a 21.1% decline year-over-year in June.
A total of 360 new homes were sold during the 12 months that ended in July, up from 358 for the year that ended in June.
Out of all housing closings, new home closings represented 4.8%. As a part of the whole, new home closings were 4.1% a year earlier. Closings of new and existing homes slid year-over-year in July after also falling in June year-over-year.
Pricing and Mortgage Trends
In July, there was a 9.5% drop year-over-year in the average per-unit price of newly sold homes, settling at $211,702. This decline compares to a 1.5% boost in June year-over-year.
Average mortgage size on new homes saw a fall year-over-year in contrast to prices of new homes. Average mortgage size slid 10.4% to $191,022 in July from a year earlier. In June 2016, average mortgage size increased 10.6% from a year earlier.
Other Market Trends
There was no change in the composition of the new home market with regard to the types of properties sold in July 2016. Single-family home closings have made up all of new home closings while attached unit closings have represented no part of closings.
There was a 10.5% drop year-over-year in the average unit size of newly sold homes to 2,070 square feet in July 2016. The average size of newly sold homes moved from 2,317 square feet in June 2015 to 1,186 square feet in June 2016.
Foreclosures and real estate owned (REO) closings fell in July from a year earlier, but remained a burden on the market. Foreclosures and REO closings, taken together, represented 30.5% of existing closings, lower than 35.2% a year earlier. The percentage of existing home closings involving foreclosures went from 15.8% in July 2015 to 16.7% in July 2016 and REO closings as a percentage of existing home closings sank to 13.8% from 19.4% a year earlier.