The Mobile, AL market saw a drop in new home closings year-over-year in June, but the percentage drop was not as steep as May 2016, giving suggestion that the market may be leveling out. Closings slid 21.1% from a year earlier to 30. In comparison, new home closings in the same month last year saw a 21.6% fall year-over-year in May.
A total of 358 new homes were sold during the 12 months that ended in June, down from 366 for the year that ended in May.
Out of all housing closings, new home closings represented 4.7%. A year ago, 5.1% of total closings were new home closings. Following a year-over-year increase in May, closings of new and existing homes slid year-over-year in June.
Pricing and Mortgage Trends
In June, the average price of newly sold homes jumped year-over-year to $218,774 per unit, a 1.5% surge. This boost follows a move from $214,401 per unit to $215,423 from May 2015 to May 2016.
Along with new home prices, there was an increase year-over-year in the average mortgage size on newly sold homes. In June 2016, the average mortgage size on newly sold homes saw a 10.6% surge from a year earlier. Average mortgage size grew 2.0% in May 2016 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 June 2016. Single-family home closings have made up all of new home closings while attached unit closings have represented no part of closings.
For all new homes sold, the average unit size fell 48.8% year-over-year to 1,186 square feet in June 2016. In May, the average size of new homes sold went from 1,965 square feet a year earlier to 1,453 square feet.
Foreclosures and real estate owned (REO) closings decreased in June from a year earlier, but stayed a drag on the market. Out of all existing home closings, foreclosures combined with REO closings accounted for 32.7% of closings, below 33.7% a year earlier. The percentage of existing home closings involving foreclosures went from 15.6% in June 2015 to 16.3% in June 2016 and REO closings as a percentage of existing home closings declined to 16.3% from 18.1% a year earlier.