In the Fayetteville, AR market, new home closings dropped year-over-year in February, and the decline was by a larger percentage than the January 2016. New home closings moved from 104 a year earlier to 10 after the figure moved from 91 in January 2015 to 16 in January 2016.
A total of 551 new homes were sold during the 12 months that ended in February, down from 645 for the year that ended in January.
New home closings represented 10 out of the 659 total closings, which is a smaller percentage than the 104 of 715 total closings a year earlier. For new and existing homes, closings declined in February after also declining in January year-over-year.
Pricing and Mortgage Trends
The average price of new homes was $262,631, an increase from $246,310 a year earlier. This was on the heels of a 16.9% boost in January year-over-year.
Average mortgage size on newly sold homes saw a decline year-over-year from $212,698 to $184,388. Average mortgage size rose 17.6% in January 2016 from a year earlier.
Other Market Trends
There has been little change in the composition of the market with regard to the types of properties sold.
The average unit size of newly sold homes rose from 2,247 square feet a year earlier to 3,095 square feet.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in February, but did not look to be a burden on the market. Together, foreclosures plus REO closings made up 19.3% of existing home closings, down from 27.8% a year earlier. The percentage of existing home closings involving foreclosures slid to 8.0% in February from 11.9% a year earlier while REO closings as a percentage of existing home closings dropped to 11.2% from 15.9% a year earlier.