In the Columbus, GA market in August, closings of new homes declined year-over-year, and the percentage decline worsened from July 2015, indicating the market may be weakening. New home closings saw a decline of 19.2% from the year earlier to 21. In comparison, new home closings in the same month last year saw a 11.5% drop year-over-year in July.
A total of 245 new homes were sold during the 12 months that ended in August, down from 250 for the year that ended in July.
Out of all housing closings, new home closings represented 6.6%. This is down from the 7.7% of closings a year earlier. After rising year-over-year in July, closings of new and existing homes dropped year-over-year in August.
Pricing and Mortgage Trends
In August, there was a 6.4% surge year-over-year in the average price of newly sold homes, reaching $253,110 per unit. This bump is smaller than the 7.5% hike in July year-over-year.
Average mortgage size on new homes gained year-over-year along with new home prices. In August 2015, average mortgage size gained 1.3% from a year earlier to $236,707. Average mortgage size rose 13.8% in July 2015 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 August 2015. Single-family home closings have accounted for all of new home closings while attached unit closings have represented no part of closings.
The average unit size of newly sold homes increased 35.8% year-over-year to 3,446 square feet in August 2015. The average size of newly sold homes moved from 2,575 square feet in July 2014 to 2,356 square feet in July 2015.
Foreclosures and real estate owned (REO) closings decreased in August from a year earlier, but remained a drag on the market. Together, foreclosures plus REO closings accounted for 37.3% of existing home closings, down from 42.3% a year earlier. The percentage of existing home closings involving foreclosures went from 21.2% in August 2014 to 20.7% in August 2015 and REO closings as a percentage of existing home closings declined to 16.6% from 21.2% a year earlier.