New home closings slid year-over-year in September in the Cedar Rapids, IA market, and there were suggestions of weakening market conditions with a percentage decline steeper than that of August 2015. Closings slumped 19.4% from a year earlier to 25. This came on the heels of a 11.9% drop year-over-year in August.
A total of 370 new homes were sold during the 12 months that ended in September, down from 376 for the year that ended in August.
New home closings made up 5.2% of overall housing closings. They accounted for 5.6% of closings a year earlier. For new and existing homes, closings slid in September after also declining in August year-over-year.
Pricing and Mortgage Trends
The average per-unit value of new homes sank year-over-year to $246,060 in September, a fall of 1.0% from a year earlier. This fall compares to a 20.9% surge in August year-over-year.
For newly sold homes, the average mortgage size saw a decline year-over-year in contrast to new home prices. It slid to $187,823 in September, a 8.7% decline. In August 2015, average mortgage size on newly sold homes saw a 8.5% rise year-over-year from a year earlier.
Other Market Trends
There has been little change in the composition of the market with regard to the types of properties sold. From a year ago, single-family home closings have moved from 83.9% of new home closings to 84.0% of closings while attached units have gone from 16.1% of closings to 16.0% of closings.
The average unit size of newly sold homes sank 8.8% year-over-year to 1,292 square feet in September 2015. The average size of newly sold homes moved from 1,399 square feet in August 2014 to 1,851 square feet in August 2015.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in September, but did not appear to be dragging the market. Combined, foreclosures plus REO closings represented 13.7% of existing home closings, below 18.1% a year earlier. The percentage of existing home closings involving foreclosures went from 6.9% in September 2014 to 6.4% in September 2015 and REO closings as a percentage of existing home closings slid to 7.3% from 11.2% a year earlier.