In the Cedar Rapids, IA market in July, new home closings fell year-over-year, and there were signals of worsening market conditions as the percentage decline was steeper than June 2016. New home closings saw a 61.8% drop from a year earlier to 21. This followed a 36.4% drop year-over-year in June.
A total of 362 new homes were sold during the 12 months that ended in July, down from 396 for the year that ended in June.
Out of all housing closings, new home closings represented 4.1%. This is down from the a year earlier when new home closings made up 8.3% of total closings. Closings of new and existing homes dropped year-over-year in July after also falling in June year-over-year.
Pricing and Mortgage Trends
From July 2015 to July 2016, the average price of newly sold homes went from $248,106 to $249,571. This followed a 9.1% lift in June year-over-year.
The average mortgage size on newly sold homes saw a surge year-over-year along with new home prices. The average mortgage size rose to $219,677 in July, marking a 9.1% bump compared with a year earlier. In June 2016, average mortgage size on newly sold homes saw a 16.4% lift year-over-year from a year earlier.
Other Market Trends
As a percentage of new home closings, attached unit closings have grown from last year while single-family home closings have dropped. Attached unit closings grew from 7.3% of all closings in July 2015 to 14.3% of closings in July 2016. Meanwhile, single-family home closings as a percentage of all new home closings sank to 85.7% of closings from 92.7% of closings.
The average unit size of newly sold homes gained 32.9% year-over-year to 2,189 square feet in July 2016. In June, the average size of new homes sold went from 1,529 square feet a year earlier to 1,560 square feet.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in July, but did not appear to be dragging the market. Foreclosures and REO closings, taken together, made up 9.7% of existing closings, lower than 11.5% a year earlier. The percentage of existing home closings involving foreclosures went from 5.1% in July 2015 to 4.7% in July 2016 and REO closings as a percentage of existing home closings fell to 5.1% from 6.4% a year earlier.