New home closings in the Mobile, AL market jumped year-over-year in July, and there were suggestions that the market may be gaining momentum as the percentage bump proved better than June 2015. There was a 38.9% climb in new home closings from a year earlier. In comparison, new home closings in the same month last year saw a 25.9% boost year-over-year in June.
A total of 305 new homes were sold during the 12 months that ended in July, up from 298 for the year that ended in June.
Out of all housing closings, new home closings represented 3.5%. A year earlier, new home closings represented 3.0% of total closings. Closings of new and existing homes jumped year-over-year in July after also rising in June year-over-year.
Pricing and Mortgage Trends
Average price of newly sold homes had a 3.0% drop year-over-year to $208,042 per unit in July. This decline compares to a 3.4% rise in June year-over-year.
Average mortgage size on new homes saw a fall year-over-year in contrast to prices of new homes. It dropped 4.3% in July from a year earlier, reaching $193,912. In June 2015, average mortgage size on newly sold homes saw a 1.9% drop 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 2015. Single-family home closings have represented all of new home closings while attached unit closings have accounted for no part of closings.
The average unit size of newly sold homes fell 46.2% year-over-year to 1,300 square feet in July 2015. In June, the average size of new homes sold went from 1,851 square feet a year earlier to 1,100 square feet.
Foreclosures and real estate owned (REO) closings decreased in July from a year earlier, but remained a burden on the market. Combined, foreclosures plus REO closings represented 34.2% of existing home closings, below 40.1% a year earlier. The percentage of existing home closings involving foreclosures sank to 15.2% in July from 20.1% a year earlier and REO closings moved from 20.0% of existing home closings in July 2014 to 19.0% in July 2015.