In the Birmingham, AL market, new home closings fell year-over-year in August, but the decline was less than the year-over-year decline in July. New home closings moved from 7 a year earlier to 5 after the figure moved from 16 in July 2014 to 10 in July 2015.
A total of 146 new homes were sold during the 12 months that ended in August, down from 148 for the year that ended in July.
New home closings were 5 out of the 491 total closings, a move on a percentage basis from 7 of 488 a year earlier. Closings of new and existing homes remained steady in August after rising in July year-over-year.
Pricing and Mortgage Trends
The average new home price was $165,722, down from $189,018 a year earlier. This was on the heels of a 6.0% decline in July from a year earlier.
Average mortgage size on new homes moved from $150,965 to $149,922. Average mortgage size on new homes went from $207,764 in July 2014 to $190,440 in July 2015.
Other Market Trends
There was no change in the composition of the new home market with regard to the types of properties sold in August 2015.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in August, but did not appear to be dragging the market. Combined, foreclosures plus REO closings made up 19.8% of existing home closings, below 24.9% a year earlier. The percentage of existing home closings involving foreclosures went from 11.0% in August 2014 to 10.1% in August 2015 and REO closings as a percentage of existing home closings dropped to 9.7% from 13.9% a year earlier.