In the Kansas City, MO market in October, closings of new homes slid year-over-year, and there were signals the market may be weakening with a percentage decline steeper than September 2015. New home closings saw a 22.9% fall from a year earlier to 111. This followed a 11.6% fall year-over-year in September.
A total of 1,619 new homes were sold during the 12 months that ended in October, down from 1,652 for the year that ended in September.
New home closings represented 2.9% of overall housing closings. New home closings were 3.7% of overall closings last year. Following a year-over-year increase in September, closings of new and existing homes dropped year-over-year in October.
Pricing and Mortgage Trends
For newly sold homes, the average price grew 10.5% year-over-year in October to $343,681 per unit. This surge is better than the 2.2% bump in September year-over-year.
The average mortgage size on newly sold homes saw a hike year-over-year along with new home prices. In October 2015, the average mortgage size was $282,255, up 8.5% from a year earlier. In September 2015, average mortgage size on newly sold homes saw a 1.4% gain year-over-year from a year earlier.
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 share of new home closings belonging to attached units rose from 4.2% of closings in October 2014 to 6.3% of closings in October 2015. Conversely, the share belonging to single-family homes sank to 93.7% of closings from 95.8% of closings.
There was a 1.4% decline year-over-year in the average unit size of newly sold homes to 2,109 square feet in October 2015. For newly sold homes, an average size decline contrasting with an average price rise was also seen in September 2015 when the average size of newly sold homes sank 2.3% to 2,155 square feet. The average size of newly sold homes moved from 2,206 square feet in September 2014 to 2,155 square feet in September 2015.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in October, but did not appear to be dragging the market. Together, foreclosures plus REO closings accounted for 18.8% of existing home closings, down from 24.0% a year earlier. The percentage of existing home closings involving foreclosures fell to 8.8% in October from 12.4% a year earlier while REO closings as a percentage of existing home closings dropped to 10.1% from 11.6% a year earlier.