In December, the Montgomery, AL market saw a drop year-over-year in new home closings, but the decline was less than the year-over-year decline in November. New home closings moved from 36 a year earlier to 8 after the figure moved from 20 in November 2014 to 2 in November 2015.
A total of 171 new homes were sold during the 12 months that ended in December, down from 199 for the year that ended in November.
New home closings represented 8 out of the 183 total closings, which is a smaller percentage than the 36 of 280 total closings a year earlier. Following a year-over-year decline in November, closings of new and existing homes also sank year-over-year in December.
Pricing and Mortgage Trends
The average new home value went from $310,734 last year to $365,772. This followed a 12.9% bump in November year-over-year.
From the year-ago figure of $242,303, the average mortgage size on new homes moved up to $268,218. Average mortgage size on new homes went from $234,573 in November 2014 to $300,026 in November 2015.
Other Market Trends
There was no change in the composition of the new home market with regard to the types of properties sold in December 2015.
The average unit size of newly sold homes rose from 2,469 square feet a year earlier to 3,439 square feet.
Foreclosures and real estate owned (REO) closings declined in December from a year earlier, but remained a burden on the market. Together, foreclosures plus REO closings made up 32.0% of existing home closings, down from 43.9% a year earlier. The percentage of existing home closings involving foreclosures dropped to 9.7% in December from 23.4% a year earlier while REO closings as a percentage of existing home closings rose to 22.3% from 20.5%.