There was an increase in closings of new homes in the Des Moines, IA market in June year-over-year, and the percentage bump that was sharper than May 2016 seems to indicate improving market conditions. There was a 23.4% hike in new home closings from a year earlier. This followed a 8.7% rise year-over-year in May.
A total of 1,689 new homes were sold during the 12 months that ended in June, up from 1,649 for the year that ended in May.
New home closings made up 11.2% of overall housing closings. They made up 10.5% of closings a year earlier. Closings of new and existing homes rose in June after staying steady in May from a year earlier.
Pricing and Mortgage Trends
The average per-unit price of newly sold homes jumped year-over-year to $299,247 in June, up 1.3% from last year. This rise is smaller than the 4.0% bump in May year-over-year.
Average mortgage size on new homes saw a fall year-over-year in contrast to prices of new homes. It dropped 1.1% in June from a year earlier to $246,169. Average mortgage size grew 4.6% in May 2016 from a year earlier.
Other Market Trends
Single-family homes accounted for a greater percentage of new home closings than last year. The share of new home closings belonging to single-family homes gained from 81.9% in June 2015 to 86.7% of closings in June 2016. Conversely, the share of new home closings belonging to attached units sank to 13.3% of closings from 18.1% of closings.
There was a 1.3% fall year-over-year in the average unit size of newly sold homes to 1,729 square feet in June 2016. In May, the average size of new homes sold went from 1,717 square feet a year earlier to 1,704 square feet.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in June, but did not appear to be dragging the market. Together, foreclosures plus REO closings accounted for 10.4% of existing home closings, down from 10.7% a year earlier. The percentage of existing home closings involving foreclosures rose to 5.0% in June from 3.7% a year earlier while REO closings as a percentage of existing home closings dropped to 5.4% from 7.0% a year earlier.