In the Fayetteville, AR market, closings of new homes fell year-over-year in May, and the decline was by a larger percentage than the April 2016. New home closings moved from 65 a year earlier to 9 after the figure moved from 77 in April 2015 to 11 in April 2016.
A total of 343 new homes were sold during the 12 months that ended in May, down from 399 for the year that ended in April.
New home closings were 6.3% of total closings a year earlier, and this percentage saw a fall as new home closings this year made up 9 of the 994 total closings. After rising year-over-year in April, closings of new and existing homes fell year-over-year in May.
Pricing and Mortgage Trends
The average price of new homes was $275,117, an increase from $259,345 a year earlier. This came after a 34.2% lift in April year-over-year.
Average mortgage size on new homes went from $213,769 a year earlier to $271,609. Average mortgage size on new homes went from $221,780 in April 2015 to $289,627 in April 2016.
Other Market Trends
There was no change in the composition of the new home market with regard to the types of properties sold in May 2016.
The average unit size of newly sold homes fell from 2,465 square feet a year earlier to 1,954 square feet.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in May, but did not appear to be dragging the market. Together, foreclosures plus REO closings represented 12.0% of existing home closings, down from 17.3% a year earlier. The percentage of existing home closings involving foreclosures sank to 5.2% in May from 6.7% a year earlier while REO closings as a percentage of existing home closings declined to 6.8% from 10.5% a year earlier.