In October, the Wichita, KS market saw a fall year-over-year in new home closings, a downhill move after a hike in September 2015. New home closings saw a 15.9% fall from a year earlier to 37. This came on the heels of a 6.2% hike year-over-year in September.
A total of 590 new homes were sold during the 12 months that ended in October, down from 597 for the year that ended in September.
As a percentage of overall housing closings, new home closings accounted for 2.6%. This is down from the a year earlier when new home closings accounted for 4.2% of total closings. Following a year-over-year increase in September, closings of new and existing homes also increased year-over-year in October.
Pricing and Mortgage Trends
The average price of new homes climbed year-over-year in October to $279,398 per unit, a rise of 10.1%. This bump compares to a 7.0% fall in September from a year earlier.
For newly sold homes, the average mortgage size climbed year-over-year along with new home prices. In October 2015, the average mortgage size on newly sold homes saw a 17.3% bump from a year earlier. In September 2015, average mortgage size on newly sold homes saw a 5.7% drop from a year earlier.
Other Market Trends
The share of new home closings made up by attached units has risen while the share belonging to single-family homes has fallen. The share of new home closings belonging to attached units increased from no part of closings in October 2014 to 2.7% of closings in October 2015. Meanwhile, single-family home closings as a percentage of all new home closings dropped to 97.3% of closings from all of closings.
For all new homes sold, the average unit size climbed 27.4% year-over-year to 3,291 square feet in October 2015. In September, the average size of new homes sold went from 2,627 square feet a year earlier to 2,451 square feet.
Foreclosures and real estate owned (REO) closings continued to rise in October from a year earlier and remained a burden on the market. Foreclosures and REO closings, taken together, made up 28.9% of existing home closings, higher than 18.2% a year earlier. The percentage of existing home closings involving foreclosures rose to 20.3% in October from 8.8% a year earlier and REO closings moved from 9.5% of existing home closings in October 2014 to 8.6% in October 2015.