Closings of new homes declined year-over-year in June in the Iowa City, IA market, drawing a downward slope off of a rise in May 2016. New home closings saw a 11.8% decline from a year earlier to 45. This came after a 32.0% jump year-over-year in May.
A total of 270 new homes were sold during the 12 months that ended in June, down from 276 for the year that ended in May.
Out of all housing closings, new home closings accounted for 8.9%. New home closings were 9.3% of overall closings last year. Following a year-over-year rise in May, closings of new and existing homes slid year-over-year in June.
Pricing and Mortgage Trends
The average price of new homes went from $337,894 in June 2015 to $336,538 in June 2016. This came after a 12.0% hike in May year-over-year.
The average mortgage size on newly sold homes saw a bump year-over-year in contrast to new home prices. It climbed 4.7% in June from a year earlier to $286,710. In May 2016, average mortgage size increased 1.6% from a year earlier.
Other Market Trends
As a percentage of new home closings, attached unit closings have grown from last year while single-family home closings have dropped. The share of new home closings belonging to attached units climbed from 9.8% of closings in June 2015 to 11.1% of closings in June 2016. Conversely, the share belonging to single-family homes dropped to 88.9% of closings from 90.2% of closings.
The average unit size of newly sold homes fell 4.5% year-over-year to 1,649 square feet in June 2016. In May, the average size of new homes sold went from 1,667 square feet a year earlier to 1,685 square feet.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in June, but did not appear to be dragging the market. Combined, foreclosures plus REO closings represented 2.8% of existing home closings, below 5.2% a year earlier. The percentage of existing home closings involving foreclosures went from 2.2% in June 2015 to 1.3% in June 2016 and REO closings as a percentage of existing home closings declined to 1.5% from 3.0% a year earlier.