New home closings in the Davenport, IA market fell year-over-year in August, and the percentage decline, which was steeper than July 2015, gave signs that the market may be worsening. Closings dropped 54.5% from a year earlier to 15. This was after the housing market saw a 10.5% drop year-over-year in July.
A total of 199 new homes were sold during the 12 months that ended in August, down from 217 for the year that ended in July.
Out of all housing closings, new home closings made up 2.6%. This is down from the 5.0% of closings a year earlier. Following a year-over-year decline in July, closings of new and existing homes also sank year-over-year in August.
Pricing and Mortgage Trends
In August, there was a 13.5% drop year-over-year in the average per-unit price of newly sold homes, settling at $339,821. This drop compares to a 6.1% surge in July year-over-year.
Average mortgage size on new homes declined year-over-year in contrast to new home prices. In August 2015, average mortgage size on new homes sold was $269,608, down 17.7% from a year earlier. In July 2015, average mortgage size grew 7.1% from a year earlier.
Other Market Trends
As a percentage of new home closings, attached unit closings have gained from last year while single-family home closings have dropped. Attached unit closings rose from no part of all closings in August 2014 to 6.7% of closings in August 2015. At the same time, the share belonging to single-family homes fell to 93.3% of closings from all of closings.
For all new homes sold, the average unit size dropped 20.1% year-over-year to 2,110 square feet in August 2015. The average size of newly sold homes moved from 2,886 square feet in July 2014 to 2,742 square feet in July 2015.
Foreclosures and real estate owned (REO) closings rose in August from a year earlier and did not appear to be dragging the market. Foreclosures and REO closings, taken together, represented 17.9% of existing home closings, higher than 16.2% a year earlier. The percentage of existing home closings involving foreclosures stayed at 8.9% of closings in August from a year earlier while REO closings as a percentage of existing home closings climbed to 9.0% from 7.3%.