In the Kansas City, MO market, new home closings sank year-over-year in June, but there were signals of market improvement with a percentage drop less steep than in May 2016. There was a 26.3% decline in new home closings from a year earlier. This followed a 30.7% fall year-over-year in May.
A total of 2,280 new homes were sold during the 12 months that ended in June, down from 2,354 for the year that ended in May.
Out of all housing closings, new home closings made up 3.9%. This is down from the a year earlier when new home closings represented 5.2% of total closings. After rising year-over-year in May, closings of new and existing homes declined year-over-year in June.
Pricing and Mortgage Trends
In June, the average price of newly sold homes dropped year-over-year to $357,281 per unit, marking a 1.1% decline from the year-earlier figure. This drop compares to a period of relatively little movement in May from a year earlier.
Average mortgage size on new homes saw a decline year-over-year in contrast to prices of new homes. It sank 1.8% in June from a year earlier, reaching $297,288. Average mortgage size went from $295,731 in May 2015 to $293,490 in May 2016.
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. Single-family home closings climbed from 93.6% of new closings in June 2015 to 98.1% of closings in June 2016. Conversely, the share of new home closings belonging to attached units dropped to 1.9% of closings from 6.4% of closings.
The average unit size of newly sold homes sank 3.3% year-over-year to 2,323 square feet in June 2016. In May, the average size of new homes sold went from 2,346 square feet a year earlier to 2,286 square feet.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in June, but did not appear to be dragging the market. Together, foreclosures plus REO closings made up 11.4% of existing home closings, down from 16.8% a year earlier. The percentage of existing home closings involving foreclosures declined to 4.6% in June from 6.8% a year earlier while REO closings as a percentage of existing home closings sank to 6.8% from 10.0% a year earlier.