New home closings declined year-over-year in September in the Fayetteville, AR market, and the decline was by a larger percentage than the August 2015. New home closings moved from 65 a year earlier to 8 after the figure moved from 93 in August 2014 to 13 in August 2015.
A total of 513 new homes were sold during the 12 months that ended in September, down from 570 for the year that ended in August.
New home closings represented 8 out of the 954 total closings, which is a smaller percentage than the 65 of 834 total closings a year earlier. Closings of new and existing homes gained year-over-year in September following a drop in August year-over-year.
Pricing and Mortgage Trends
The average new home value went from $233,496 last year to $282,093. This came after a 3.4% fall in August from a year earlier.
Average mortgage size on new homes increased to $225,045 from $208,680 last year. Average mortgage size on new homes went from $246,681 in August 2014 to $235,241 in August 2015.
Other Market Trends
The share of new home closings made up by attached units has risen while the share belonging to single-family homes has fallen.
The average unit size of newly sold homes rose from 2,241 square feet a year earlier to 2,623 square feet.
Foreclosures and real estate owned (REO) closings increased in September from a year earlier and did not look to be a burden on the market. Combined, foreclosures plus REO closings made up 22.4% of existing home closings, above 20.5% a year earlier. The percentage of existing home closings involving foreclosures slid to 8.4% in September from 10.4% a year earlier while REO closings as a percentage of existing home closings rose to 14.1% from 10.1%.