Closings of new homes in the Champaign, IL market sank year-over-year in July, and the percentage decline was steeper than June 2016, giving suggestion the market may be worsening. New home closings saw a decline of 13.6% from the year earlier to 19. In comparison, new home closings in the same month last year saw a 5.0% fall year-over-year in June.
A total of 164 new homes were sold during the 12 months that ended in July, down from 167 for the year that ended in June.
New home closings represented 5.0% of overall housing closings. A year ago, new home closings made up 4.6%. Closings of new and existing homes fell year-over-year in July after also falling in June year-over-year.
Pricing and Mortgage Trends
In July, the average price of newly sold homes gained year-over-year to $327,417 per unit, a 7.6% rise. This surge compares to a 3.5% fall in June from a year earlier.
There was no change year-over-year in the average mortgage size on new homes in July, remaining level at $255,747. Average mortgage size sank 9.8% in June 2016 from a year earlier.
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. Single-family home closings have accounted for all of new home closings while attached unit closings have made up no part of closings.
Foreclosures and real estate owned (REO) closings rose in July from a year earlier and did not look to be a burden on the market. Combined, foreclosures plus REO closings made up 11.3% of existing home closings, above 11.1% a year earlier. The percentage of existing home closings involving foreclosures rose to 6.3% in July from 3.5% a year earlier while REO closings as a percentage of existing home closings fell to 4.9% from 7.6% a year earlier.