In the Louisville, KY market, new home closings declined year-over-year in May, but the percentage fall, which was less than that of April 2016, gave signs that the market may be evening out. Closings declined 10.9% from a year earlier to 49. This came after a 43.7% drop year-over-year in April.
A total of 629 new homes were sold during the 12 months that ended in May, down from 635 for the year that ended in April.
Of the total number of closings, new home closings made up 3.2%. New home closings were 3.8% of overall closings last year. For new and existing homes, closings gained year-over-year in May after also increasing in April year-over-year.
Pricing and Mortgage Trends
The average per-unit price of newly sold homes increased year-over-year to $410,491 in May, up 10.2% from last year. This surge compares to a period of relatively little movement in April from a year earlier.
For newly sold homes, the average mortgage size saw a surge year-over-year along with new home prices. Average mortgage size rose 7.2% to $290,138 in May from a year earlier. Average mortgage size rose 3.3% in April 2016 from a year earlier.
Other Market Trends
As a share of new home closings, single-family home closings have climbed from last year while the share belonging to attached units has fallen. The share of new home closings belonging to single-family homes jumped from 92.7% in May 2015 to 98.0% of closings in May 2016. At the same time, the share of new home closings belonging to attached units dropped to 2.0% of closings from 7.3% of closings.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in May, but did not look to be a burden on the market. Out of all existing home closings, foreclosures combined with REO closings accounted for 16.2% of closings, below 18.5% a year earlier. The percentage of existing home closings involving foreclosures rose to 8.6% in May from 6.8% a year earlier while REO closings as a percentage of existing home closings dropped to 7.6% from 11.8% a year earlier.