In the Springfield, IL market, closings of new homes declined year-over-year in July, and the decline was by a larger percentage than the June 2016. New home closings moved from 8 a year earlier to 2 after the figure moved from 11 in June 2015 to 4 in June 2016.
A total of 63 new homes were sold during the 12 months that ended in July, down from 69 for the year that ended in June.
Last year, 8 of 392 total closings were new homes, and this percentage saw a decline as new home closings this year made up 2 of the 320 total closings. Following a year-over-year decline in June, closings of new and existing homes also dropped year-over-year in July.
Pricing and Mortgage Trends
The average new home price was $286,251, down from $307,531 a year earlier. This was on the heels of a 35.3% bump in June year-over-year.
Average mortgage size on new homes fell from $224,346 to $169,675. Average mortgage size on new homes went from $219,772 in June 2015 to $306,876 in June 2016.
Other Market Trends
There was no change in the composition of the new home market with regard to the types of properties sold in July 2016.
Foreclosures and real estate owned (REO) closings increased in July from a year earlier and did not appear to be dragging the market. Combined, foreclosures plus REO closings made up 12.6% of existing home closings, above 11.7% a year earlier. The percentage of existing home closings involving foreclosures rose to 7.2% in July from 4.9% a year earlier while REO closings as a percentage of existing home closings sank to 5.3% from 6.8% a year earlier.