The Huntsville, AL market saw a drop in new home closings year-over-year in December, and the percentage drop was steeper than November 2015, giving suggestion the market may be worsening. New home closings saw a decline of 48.1% from the year earlier to 54. This followed a 21.0% decline year-over-year in November.
A total of 752 new homes were sold during the 12 months that ended in December, down from 802 for the year that ended in November.
New home closings represented 9.4% of overall housing closings. This is down from the a year earlier when new home closings accounted for 17.2% of total closings. Following a year-over-year decline in November, closings of new and existing homes also dropped year-over-year in December.
Pricing and Mortgage Trends
Average price of newly sold homes saw a 5.1% hike year-over-year in December to $262,896 per unit. This surge is an improvement over the 4.2% rise in November year-over-year.
There was a bump year-over-year in the average mortgage size on new homes along with new home prices. In December 2015, the average mortgage size was $235,957, a 6.0% boost from a year earlier. In November 2015, average mortgage size gained 3.0% 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 December 2015. Single-family home closings have made up all of new home closings while attached unit closings have represented no part of closings.
Foreclosures and real estate owned (REO) closings fell in December from a year earlier, but remained a burden on the market. Out of all existing home closings, foreclosures combined with REO closings made up 28.5% of closings, below 36.1% a year earlier. The percentage of existing home closings involving foreclosures sank to 13.4% in December from 16.8% a year earlier while REO closings as a percentage of existing home closings dropped to 15.1% from 19.2% a year earlier.